Baltic Exchange has issued the tanker report for the 34th week of this year. The report of 26th August 2022 provides valuable insight into this week’s tanker market dealings, freight rates, and charter activities.
Clean Petroleum Product freight saw a resurgence in the Middle East Gulf. TC1 has jumped up 50 WS points to WS266.88 taking the TCE for the run up over $55,000 per day. Similarly, a run west on an LR2, TC20 has firmed up about $770,000 to just shy of $5,000,000. The LR1s also firmed with TC5 climbing 21.43 points to WS288.57. On a voyage to the UK-continent TC8 also hopped up to just over the $4,000,000 mark. On the MRs TC17 also saw increased momentum over the week and a spree of fixing leading the index to rise 56.67 point across the week and end up at WS399.17.
In the West the LR2s has seen improvements as in the Middle East. TC15 has added $145,000 bringing the index up to $3,837,500 by the end of the week. The LR1s of TC16 remained balanced. However, lesser market activity saw the index just dropping under the WS230 by the end of the week.
MRs on the UK-Continent had a little flurry of activity midweek. For both runs Transatlantic and down to West Africa which overall held rates stable in the region. TC2 dropped an incremental WS4.45 points to WS229.72 and TC19 only lost a touch over one point to WS237.5.
In the US-Gulf the MRs looked to have reached a floor for the moment with TC14 currently sitting as WS150 and TC18 resting at WS220.
The MR Atlantic Triangulation Basket TCE lost $1,569 from $22,947 to $21,387.
Handymax vessels, both in the Mediterranean and the Baltic, were chipped away again. Up in the Baltic TC9 lost 32.14 points to end up at WS467.86. In the Mediterranean the Cross-Med (TC6) suffered from enquiry remaining muted during the week, leading the index to be currently pegged at WS221.25 (-66.88).
VLCC rates have remained flat over the week across all regions compared to a relatively volatile market previously. For 270,000mt Middle East Gulf/China, the rate through the week was flat with only a marginal rise after initially dropping at the front end to WS79.64 and ending up at WS80.64 (a round-trip TCE of $37,270 per day). Meanwhile, in the Atlantic, West Africa/China, the initial fall in rates to around WS80.09 recovered ever so slightly finishing at WS80.86.
Rates for 280,000mt Middle East Gulf/USG (via Cape of Good Hope) fell marginally by WS0.61 to WS45.72 (a round-trip TCE $2647). 270,000mt USG/China fell from initial fixing at $9 million (a round-trip TCE of $30,519) to $8.931250. But with reported fixtures between $9.3 and $8.7 million, level headedness prevailed to support midway levels.
The biggest mover by far was the 135,000mt Black Sea/Augusta market, rising just over WS18 points from an initial WS172.78 to WS188.72 (An increase of $10,540 per day TCE round trip; $64,555 to $75,095 per day).
This far outweighed the quieter Middle East Gulf/Med or West African/Continent markets which dipped both just over WS2 points from the start of the week. This dip has pushed TCE earnings for Middle East Gulf/Med into negative at -$1,650 per day.
The Med Aframax market has begun moving upward with the rate for 80,000mt Ceyhan/West Mediterranean improving by WS8.87 to WS194.06 (a round-trip TCE of $44,474 per day). This is repeated in the North where 80,000mt Hound Point/UK Continent rose by nearly WS16 points and now sits at WS193.13 (a daily round-trip TCE of $53,482). Conversely, 100,00mt Primorsk/UK Continent fell by around WS11.5 points settling at WS209.69 (a round-trip TCE of $60,322 per day).
Across the Atlantic, the Caribbean market showed the greatest fall overall losing WS43.75 within the week, ending up at WS288.75 (a round-trip TCE earning of $59,337). But the rest of the US market wasn’t spared with 70,000mt USG/ARA shaving WS24.28 from the start of the week. An Aframax is now looking at WS235.36 (a round-trip TCE earning of $41,472 per day). The greatest loser overall happened to 70,000mt E.C Mexico/Houston tumbling WS65.93 points to settle at WS319.38 (a fall of $26,406 per day making TCE round-trip earnings $75,420).
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Source: Baltic Exchange