Weekly Tanker Report-Week 28, 2022

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Baltic Exchange has issued the tanker report for the 28th week of this year. The report dated 15th July 2022 provides valuable insight into this week’s tanker market dealings, freight rates, and charter activities.

Clean

In the Middle East Gulf this week both the LRs and MRs look to have plateaued and show signs of returning upwards at the time of writing. TC1 levelled off at WS200 and has started to tick up again, currently pegged at WS203.57 (+WS1.78). In the market, WS202.5 is widely reported on subjects multiple times at present. TC5 bottomed out at WS285 midweek and has then ticked up five points to WS290, returning $38k /day round trip TCE. On the MRs TC17 stopped declining at just over WS450 in the middle of the week and since then returned up to WS460.

In the West the LR2s of TC15 saw a widely reported fixture at $3.875m midweek, leading the index to climb. It currently sits at $3.879m (+$129k). On TC16 the LR1s have held around the mid WS230s all week, still returning $35k / day round trip TCE.

On the UK-Continent the MRs were much busier this week. However, there was plenty of available tonnage to prevent rates from rising sharply. TC2 rose an incremental 2.78 points to WS315.28 ($29.1k /day round trip TCE) and TC19 followed suit holding around WS325 all week.

The US Gulf MR market saw a further downturn this week with a major correction in rates stemming from a fixture midweek. TC14 has dropped to WS185 (-WS50) and TC18 has similarly dipped WS49.16 to WS286.67 ($28.6k / day round trip TCE). The MRA TCE dropped from 43,654 to 35,447. On the Handymax, TC6 has continued on a downward trajectory this week, loosing another WS35 to end up at WS273.75 by the end of the week. In the Baltic, TC9 has continued along at around WS510 this week and the round trip TCE still remains a touch over $60k /day.

VLCC

VLCC rates stayed on an upward trend. 270,000mt Middle East Gulf/China rates gained another point to WS58 (a round-trip TCE of minus $700 per day). Meanwhile, the 280,000mt Middle East Gulf/USG (via Cape of Good Hope) trip is maintained at WS33 again. In the Atlantic, rates for 260,000mt West Africa/China rose by a solitary point to WS58.5-59 level (about $2,000 per day round-trip TCE) and the US Gulf export volumes continue to provide optionality for owners, with cargoes to the East and to Europe. The rate for the 270,000mt US Gulf/China voyage jumped another $262,500 to just shy of $7.2 million (a round-trip TCE of just above zero per day).

Suezmax

Rates for 135,000mt Black Sea/Augusta recovered the recent lost ground, gaining eight points to a fraction below WS134 (a round-trip TCE of $34,700 per day). The 130,000mt Nigeria/UKC route was boosted 14 points to between the WS127.5/130 level (a round-trip TCE of $30,000 per day). In the Middle East, the rate for 140,000mt Basrah/West Mediterranean jumped 20 points to WS77.5 having started the week at mid-WS50s and a handful of charterers covering the remaining July stems with the rate on each fixture higher than the last.

Aframax

The Mediterranean market slowly started to recover and the rate for 80,000mt Ceyhan/West Mediterranean climbed seven points to almost WS170 (a round-trip TCE of about $32,200 per day). In Northern Europe the rate for 80,000mt Hound Point/UK Continent, having gained almost 60 points within the last 11 days or so, peaked at WS211 and has now eased back to WS201.5 (a daily round trip TCE of $59,500).

For the 100,000mt Primorsk/UK Cont route, rates have firmed again and are up 25 points week-on-week at WS241.5 (a round trip TCE of close to $78,400 per day). Across the Atlantic, rates appear to have peaked and are now coming off. Rates for the 70,000mt EC Mexico/US Gulf route steadily climbed to WS315, and have been last assessed on Thursday at WS301 (a round-trip TCE of $68,300 per day), two points higher than a week ago. The 70,000mt Caribbean/US Gulf trip similarly rose 25 points to almost WS300 early in the week, but have now fallen back to WS282.5 (a round-trip TCE of about $56,200). For the transatlantic trip of 70,000mt US Gulf/UK Continent, rates improved by 32.5 points to WS245 but have now slipped to WS222.5 ($36,300 per day round-tip TCE).

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Source: Baltic Exchange

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