The Baltic Exchange has issued the tanker report for the 6th week of this year. The report dated 11th February 2022 provides valuable insight into this week’s tanker market dealings, freight rates, and charter activities.
The market remains weak in both the Atlantic and the Middle East. Rates for 280,000mt Middle East Gulf/USG (via Cape of Good Hope) slipped a point to the WS16.25 level after Exxon were reported to have taken a Cosco vessel to the UK Continent via Suez at WS16.
For the 270,000mt Middle East Gulf/China route, rates eased about a quarter of a point to a fraction below WS33 (which shows a round trip TCE of minus $10,600 per day).
However, a major Chinese charterer is today reported to have covered on an Omani-controlled ship at WS33.5.
In the Atlantic region, the 260,000mt West Africa/China trip also lost a quarter-point to just below WS34 (a round-trip TCE of minus $8,900 per day) and 270,000mt US Gulf/China is $278,000 weaker at $4.075m (a round-trip TCE of minus $9,800 per day) after a Greek owner found demand lacking for their reportedly weak-positioned Atlantic-committed vessel and covered with a trader at $4m.
Overnight reports have that same trader reletting another of their vessels to a major Chinese charterer at $4.3m with a slightly later loading date.
The rate for 130,000mt Nigeria/UKC eased a further 3.5 points to the WS62 mark (showing a round-trip TCE of $450 per day), with only a couple of fixtures reported midweek at WS62.5 leading to weaker sentiment rather than fundamentals. For the 135,000mt Black Sea/Augusta route, rates fell two points to about WS71 (round-trip TCE showing minus $2,000 per day).
In the 140,000mt Basrah/West Mediterranean a couple of fixtures were reported for Shell and Repsol at WS29.5 and rate assessments have remained static this week at between WS29.5/30.
The 80,000mt Ceyhan/Mediterranean market was a little weaker with rates falling two points to WS97.25, which shows a round-trip TCE of $3,600 per day. In Northern Europe rates for 80,000mt Hound Point/UKC were still around WS95 (a round-trip TCE of minus $3,900 per day) while in the 100,000mt Baltic/UKC market rates regained 2 points to just over WS84 (a TCE of $5,500 per day).
On the other side of the Atlantic, the market rose as the list of available tonnage shortened and demand grew – especially from East Coast Mexico.
Rates for 70,000mt Caribbean/US Gulf were up 30 points to WS132.5 (a round-trip TCE of $11,100 per day), while for 70,000mt EC Mexico/US Gulf rates escalated 37.5 points from a week ago to WS144 (a TCE of about $17,800 per day round trip).
In the US Gulf/UK Continent market rates rose 11 points to just shy of WS120 ($9,400 per day round-tip TCE, which calculates to a much-improved figure basis one-way economics).
The Middle East Gulf has been steady this week with the exception of the MRs. On TC1 the LR2s were held at about WS75. The LR1s have also been balanced all week around the WS97.5 mark for TC5 55k Middle East Gulf / Japan. LR1 voyages to the west have also been subdued and TC8 currently sits at 24.68 or $1.6m.
On the MRs TC17 was tested down to WS185 (-WS10), a round trip TCE of $8616/day. West of Suez, The LR2s, TC15 80k Mediterranean / Japan have suffered from a week of inactivity and currently sit at the $1.825m mark.
The LR1s, TC16 60k Amsterdam / Offshore Lomé have been active this week. There has subsequently been a welcome 13 point upturn ending up at WS111.57.
On the UK-Continent, MR tonnage has thinned a little at the front end and cargo flow looks to be still relatively stable. TC2 37k UK-Continent / US Atlantic Coast has come up WS6.95 and is currently at WS150.56 – a round trip TCE of $6350/day. TC19 37k Amsterdam to Lagos has also risen 7.14 points to WS155.71 (a round trip TCE of $8659/day).
In the Americas, both MR routes have shown a consistently firming sentiment this week. TC14 38k US Gulf / UK-Continent is now WS 94.29 (-WS6.79) and TC18 38k from US Gulf / Brazil WS 146.79 (+8.22). The MR Atlantic basket TCE rose from $7393/day to $9216/day.
The Baltic Handymax market spiked a WS220 midweek but has then resettled and TC9 30k Baltic / UK-Continent is now at WS210 for the moment. In the Mediterranean, Cross Mediterranean Handymax rates bottomed out at around WS150 midweek, a flurry of cargoes followed resulting in levels resurging. TC6 30kt Skikda / Lavera is now back at WS160 at the time of writing.
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Source: Baltic exchange