Baltic Exchange has issued the tanker report for the 48th week of this year. The report of 01st December 2023 provides valuable insight into this week’s tanker market dealings, freight rates, and charter activities.
LRs in the MEG have been on a downward trajectory this week. The 75Kt MEG/Japan TC1 index lost 16.11 points to WS113.33 with reports of WS107.5 currently on subjects in the market. The 90kt MEG/UK-Continent TC20 run to the UK-Continent also dropped 10% of its value to $3.19m. West of Suez, Mediterranean/East LR2’s on TC15 returned to being sedate, with the index dropping off $244,000 to $3.45m as a result.
In the MEG, LR1 freight levels have managed to hold stable despite the downturns of the vessel sizes on either side of them. The 55kt MEG/Japan index of TC5 dipped an incremental 3.12 points to WS119.38 and the 65kt MEG/UK-Continent of TC8 ticked down across the week from $2.91m to $2.78m. On the UK-Continent, the 60kt ARA/West Africa TC16 index, hovered around the WS200-205 range all week after WS205 reported on subjects during the week.
MRs in the MEG took a tumble this week. The 35kt MEG/East Africa TC17 index subsequently shed 28.57 points to WS170. UK-Continent MRs resurged optimistically this week, while rates in the USG attract ballast vessels to head in that direction for the moment. The 37kt ARA/US-Atlantic coast of TC2 shot up nearly 20% this week to WS216. Similarly, TC19 (37kt ARA/West Africa) added 36.87 points, taking its value to WS235.31. Baltic round-trip TCEs for the runs are up to $27,000/day and $32,000/day, respectively.
The USG MRs reached the top of their current rally this week, followed by a correct down. TC14 (38kt US-Gulf/UK-Continent) peaked at WS280.71 up from WS264.29 and is back down at WS267.86 at the time of writing. The 38kt US Gulf/Brazil on TC18 followed a similar trend, reaching a precipice of WS365 with the index currently marked at WS357.14 or $58,000/day round trip on Baltic TCE. A 38kt US-Gulf/Caribbean TC21 trip topped out at $1.95m early in the week to shuffle back down to $1.78m ($84,000/day on Baltic round trip TCE).
The MR Atlantic Triangulation Basket TCE ultimately climbed from $55,212 to $59,782.
In the Mediterranean, Handymax’s were subject to a sharp drop to the WS260’s where they look to have plateaued. Up in Northwest Europe, the TC23 30kt Cross UK-Continent rallied 6.67 points to the mid-SW180s.
Rates for the sector showed the tiniest movement downwards, except for the US Gulf to China run, which suffered a heavier burden. The rate for 270,000 mt Middle East Gulf to China remained around the WS66.5 level, which corresponds to a daily round-trip TCE of just over $46,000 basis the Baltic Exchange’s vessel description, although this is almost $2,000 greater than a week ago. The 280,000 mt Middle East Gulf to US Gulf trip (via the cape/cape routing) is still assessed around the WS36 mark.
In the Atlantic market, the rate for 260,000 mt West Africa/China is now a point off from last Friday’s number at WS67.4 (which shows a round voyage TCE of a little over $47,000/day), while the rate for 270,000 mt US Gulf/China lost $278,889 to $9,861,111 ($44,126/day round trip TCE).
Suezmaxes in West Africa remained at levels seen last Friday where the rate for 130,000 mt Nigeria/UK Continent plateaued at WS98.77 (a daily round-trip TCE of $36,195). In the Mediterranean and Black Sea region, the 135,000 mt CPC/Med route slipped a solitary point to WS137.35 (showing a daily TCE of $63,326 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean lost four points to just under WS69.
In the North Sea, the rate for the 80,000 mt Cross-UK Continent route was cropped by another 20 points to WS145.36 (showing a round-trip daily TCE of $46,546 basis Hound Point to Wilhelmshaven). In the Mediterranean market, the rate for 80,000 mt Cross-Mediterranean continues to hover around WS150 (basis Ceyhan to Lavera, with a daily round trip TCE of $41,605, about $500/day firmer than a week ago).
On the other side of the Atlantic, after returning from Thanksgiving, the market has been tracking downwards since Monday. The rate for 70,000 mt East Coast Mexico/US Gulf (TD26) has fallen 10 points since Monday to WS181.56 (a daily round-trip TCE of $48,692) while the 70,000 mt Covenas/US Gulf rate has shed just five points to WS170.63 (a round-trip TCE of $46,546/day). The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent also slackened by five points to WS176.88 (a round trip TCE basis Houston/Rotterdam of $43,808/day).
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Source: Baltic Exchange