Baltic Exchange has issued the tanker report for the 32nd week of this year. The report of 12th August 2022 provides valuable insight into this week’s tanker market dealings, freight rates, and charter activities.
Clean
The Middle East Gulf has been lacklustre this week on all sizes. On the LR2’s tonnage has been plentiful, TC1 has been tested down again 20.32 points to WS211.56 and TC20 lost around half a million dollars to $4.1m. The LR1’s have been relatively steadfast in comparison to their larger siblings and TC5 has held in the mid WS260s all week, with a trip west on TC8 only dropping $70,000 to $3.76m. On the MR’s, after another fairly major correction down (WS55 points), TC17 has settled out around WS282.5 at the end of the week.
In the west, the LR2’s of TC15 look to have been quiet all week and the index has subsequently dropped $250,000 to $3.75m at the time of writing. On the LR1’s WS230 has been repeated again several times this week, with the market stable on TC16 for the moment.
On the UK-Continent, action on the MR’s was at lower levels this week, allowing tonnage to accumulate in the region. TC2 has lost 18.05 points this week to end up at WS340.56 and TC19 is currently pegged at WSWS353.21 (-13.22).
The USG MR market abruptly stopped and took a major correction down this week. TC14 has lost about 150 points to end up at WS210 and TC18 has similarly shed WS150 to WS312.5. Due to the current bunker prices amongst other factors, this has taken the TC14 round trip TCE to less than half of what it was last week.
On the Handymax cross Mediterranean freight levels took a jump after enquiry came thick and fast at the beginning of the week. The TC6 index rose 82.5 points to WS347.5 taking the TCE for the run firmly back into the mid $50,000’s round trip.
In the Baltic, TC9, despite a fixture reported at WS490 has continued along a just under WS500 all week, its currently pegged at WS499.64.
VLCC
VLCC rates have turned around this week with improvements seen across all regions. For 270,000mt Middle East Gulf/China, the rate recovered two points to just shy of WS60 (a round trip TCE of $16,900 per day), while the rate for 280,000mt Middle East Gulf/USG (via Cape of Good Hope) gained 1.5 points to WS34. In the Atlantic, rates for 260,000mt West Africa/China gained 2.5 points to WS60 ($18,800) per day round-trip TCE and 270,000mt US Gulf/China had $287,501 added to the market level at $7.418m (showing a round trip TCE of $17,600 per day).
Suezmax
Rates for 135,000mt Black Sea/Augusta fell another nine points this week to about WS170 (a round-trip TCE of $63,500 per day) while for the 130,000mt Nigeria/UKC trip, rates fell a further five points to WS122.5 (a round-trip TCE of $30,200 per day). In the Middle East the rate for 140,000mt Basrah/West Mediterranean continued sliding, dropping three points this week to just below WS63.
Aframax
The Mediterranean market slipped further, losing about 17% this week. The rate for 80,000mt Ceyhan/West Mediterranean fell 37 points to the WS175 mark (a round-trip TCE of $37,500 per day). In Northern Europe the market remained relatively flat, with the rate for 80,000mt Hound Point/UK Continent static at WS185 (a daily round trip TCE of $52,000) and for the 100,000mt Primorsk/UK Cont route rates gained a meagre single point to between WS223-224 (a round trip TCE of $73,900 per day).
Across the Atlantic, the market has bounded back with the rate for 70,000mt EC Mexico/US Gulf rising a strong 75.5 points to between WS367.5-370 (a round-trip TCE of $97,500 per day) and for the 70,000mt Caribbean/US Gulf trip the rate shot up 52 points to between WS330-332.5 (showing a round-trip TCE of about $76,200). For the Transatlantic route of 70,000mt US Gulf/UK Continent, the rate rose 7.5 points again to WS270 ($54,400 per day round-tip TCE).
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Source: Baltic Exchange
