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Tankers: VLCC Market Eased During the Past Week

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In the Middle East Gulf this week freight levels have suffered as enquiry seemingly dropped off. TC1 is currently marked at WS182.5 (-14.06) and WS180 is reported on subjects. Similarly, for a run West on TC20, the index has come off $42,859 to $4,728,571. Much like their larger counterparts the LR1s have felt weakening sentiments this week but not to the same extent. TC5 dipped a meagre 1.08 points to WS195.71 and TC8 similarly shed $66,000 from $3,825,000 to $3,758,000.

AG MRs have been somewhat unsettled. The TC17 index fluctuated up and down – ranging between WS217 and WS232 – where it topped out and is currently marked at WS228.57.

West of Suez, LRs have improved off the back off some activity. TC15 jumped up to $4,250,000 and has since resettled back to $4,150,000, which is still a $216,667 improvement. TC16 has risen an incremental five points to WS182.14 where it looks to have plateaued for the moment.

Rates have surged circa 35% this week on the UK-Continent MRs. TC2 has jumped up to WS270.56 (+72.78) with a couple of vessels reported on subs at WS270 at the time of writing. Similarly, TC19 has hopped up 73.57 points to WS280.

European Handymax freight has rebounded this week with TC23 adding 85 points to WS258.56 and TC6 likewise climbing 80.62 points to WS333.75.

The American MR market had another week of big movement. But sadly for owners it was in a downward direction. TC14 has had 57.5 points cut away, dropping the index from WS166.67 to WS109.17 with reports of WS105 currently on subjects. TC18 similarly lost 91.66 points to WS181.67 after a widely reported charter at WS182.5 on Wednesday. A run to the Caribbean on TC21 has followed suit and is currently pegged at $675,000 (-$412,500).

VLCC

The VLCC market eased slightly in most areas this week. For the 270,000mt Middle East Gulf to China voyage the rate fell six points early in the week and then recovered about three points by Thursday to W93.77, which shows a daily round voyage TCE of $89,100 (about $1,000 less than a week ago) basis the Baltic Exchange’s vessel description. The rate for 280,000mt Middle East Gulf to the US Gulf (via the cape/cape routing) is assessed 1.5 points lower at WS60.28. In the Atlantic market, the rate for 260,000mt West Africa/China also lost a net three points to WS90.50, showing a round-trip TCE of $84,700 per day. The rate for 270,000mt US Gulf/China rose a steady $122,000 at $11,472,000 ($64,900 per day round-trip TCE).

Suezmax

The rate for 135,000mt CPC/Augusta regained most of the recent lost ground, rising three points to WS169 (a round-trip TCE of $91,300 per day). In the Atlantic, a busy programme in West Africa and the US Gulf has seen tonnage thin out and rates improve with the market still trending upward. For the 130,000mt Nigeria/Rotterdam voyage the rate climbed 13 points to WS128/129 level ($59,400 daily TCE basis a round-trip). In the Middle East the rate for 140,000mt Basrah/Lavera rose 6.5 points to just over WS71.

Aframax

In the North Sea market, the rate for the 80,000mt Hound Point/Wilhelmshaven route slipped 1.5 points to WS169 (a daily round-trip TCE of $70,300). In the Mediterranean, the rate for 80,000mt Ceyhan/Lavera rebounded and climbed 22.5 points to WS198 (a daily round-trip TCE of $70,600). Across the Atlantic, the Stateside Aframax market reversed the recent trend and rates rose. The rate for 70,000mt East Coast Mexico/US Gulf gained more than 18.5 points to between WS390-392.5 ($149,800 per day round-trip TCE). The rate for 70,000mt Covenas/US Gulf climbed 20 points to the mid-point of WS360-362.5 (a daily round-trip TCE of $125,300). For the Transatlantic route of 70,000mt US Gulf/Rotterdam, the rate regained 26 points to WS258 (showing a round trip TCE of $78,600 per day).
Source: Baltic Exchange

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