The Baltic report has issued the tankers report for the 7th week of this year. The report dated 19th February 2021 provides a valuable insight into this week’s tanker market dealing, frieght rates and charter activities.
Another stagnant week in this market with Worldscale fixing rates improving by less than a point.
Middle East region
In the Middle East region, 280,000mt to US Gulf via the Cape/Cape routing continues to be assessed at around WS18.5 level and rates for China are hovering around WS32.5/33 on the back of another week of minimal fixing.
In the Atlantic, 260,000mt West Africa to China was rated half a point up from last week at a fraction above WS35.
US Gulf to China rates
Meanwhile, a 270,000mt from US Gulf to China saw rates gain about $90k to $4.34m although overnight we have seen Exxon reported to have taken on subjects the Hercules I (2017 built & recently scrubber fitted) at $4.5m.
Black Sea/Med rates have improved 3.5 points to WS73/74 level, most likely on the back of a firming med Aframax market, while rates for 130,000mt Nigeria/UK-Continent showed a similar gain to around WS56/57. Basrah/Mediterranean remains at about WS18-19 basis 140,000mt.
This week’s boom sector in the West, due not least in part to poor weather.
The Mediterranean market has been rampaging this week with 80,000mt Ceyhan/Lavera up 45 points to WS120 (basis a round voyage, about $16,800/day TCE).
Northern Europe rates
Rates in Northern Europe also firmed, albeit not by as much as the Mediterranean, with 80,000mt cross-North Sea leaping 15 points to WS97.5 level and 100,000mt Baltic/UK-Continent up 11 points to WS86/87.
Across the Atlantic, rates have also significantly risen. Both the 70,000mt Caribbean/US Gulf and the 70,000mt US Gulf/UK Continent are now rated at WS109/110 level – rises of 19 and 32 points respectively.
It has been another uneventful week for LR tonnage where Middle East Gulf/Japan remained relatively static in the low WS60’s.
But by week end it was closer to WS65, whilst LR1’s rates were in the WS80/82.5 region.
35,000mt AG/East Africa
The conference rate of WS120 has been maintained for 35,000mt AG/East Africa.
MR market rates
In the Continent/USAC MR market rates picked up a little, as the winter storms in the USA resulted in significantly increased demand.
This resulted in a jump from WS125 at the start of the week to around WS160 level. There was even talk of a prompt requirement from Port Jerome being fixed at WS172.5.
Rates under pressure
However, with a couple of requirements being withdrawn and some handy tonnage being taken, brokers feel rates may come under pressure and a cargo to West Africa drew a number of offers with Charterers said to have been countering at WS155.
Backhaul MR trade
The backhaul MR trade from US Gulf to UK-Continent has been uninspiring and last seen fixed here was at WS65, representing a five-point drop over the week.
US Gulf rates for Brazil
The weakness in the US Gulf was evident in rates for Brazil which eased around four points to barely WS105 level. It was another positive week for handy Owners.
Trading cross-Mediterranean, where rates gained 50 points to around WS210 region after peaking at WS 215 for East Med loading, and WS235 was said to have been paid loading from Black Sea.
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Source: Baltic exchange