Tankers: VLCCs Down, but Product Tankers Up This Week
The market has generally seen improvements all round this week. This was reflected in the BCTI climbing 277 points to 1738.
The Middle East Gulf has seen a surge in activity on all sectors. TC1 has shot up 95 points to WS291.25 and on a trip west TC20 has sailed over the $6,000,000 mark to $6,164,000 – a jump of a little over $2,000,000 and seeing returns of over $75,000 $/day round-trip TCE. On the LR1s TC5 has similarly climbed 92.14 points to WS305.71 and TC8 is currently pegged at $4,441,000, an improvement of $965,900.
Just as the larger vessels saw a return to strength this week, subsequently the TC17 index has jumped 60 points to WS397.86
West of Suez, LR1s have been busy this week. The TC16 index has climbed 98.57 points to WS332.14 with reports of WS350 on subjects at time of writing. The LR2s have also been pulled up and TC15 is currently marked at $4,866,000 (+$1,791,000).
On the UK-Continent, MRs have been consistently active throughout the week resulting in the inevitable uptick in freight. TC2 has added 15.51 points to WS378.57 and TC19 pushed up another 24.64 points to WS403.57.
In the US Gulf, MRs began a resurgence early in the week with rates beginning to climb. However, as the Thanksgiving weekend approached activity looked to trail off and freight levels then dipped prior to the long weekend.
The MR Atlantic Triangulation Basket TCE lost $2243 from $66,897 to $64,654.
On the Handymax, current market dynamics in both North West Europe and in the Mediterranean has driven another lift in rates. TC6 gathered steam, fueled by a lack of tonnage availability, up to WS391.88 (+31.25). In the Baltic TC9 has likewise climbed 34.28 points to WS597.14.
The VLCC market took a downturn this week with charterers quelling the freight level highs reached last week. 270,000mt Middle East Gulf to China had 19.84 points cut from it to WS109.75 (a daily TCE round trip of $76,854), while the 280,000mt Middle-East Gulf to US Gulf (via the cape/cape routing) trip is currently assessed only 1.66 points lower than last week at WS71.56. In the Atlantic basin, the rate for 260,000mt from West Africa to China also took a tumble down to WS111.56 (-17.76) (a round trip TCE Earning of $79,686 per day). 270,000mt US Gulf/China has, by comparison, remained relatively stable at around the $14,400,000 – $14,600,000 region and is still returning ($84,000 per day round trip TCE).
The Suezmax market also topped out this week, where 135,000mt CPC/Augusta peaked at WS323 – up from WS258 – and has now resettled back at WS320 for the moment and is still returning a TCE of $170,000 /day. Meanwhile, for the 130,000mt voyage Nigeria to Rotterdam market, rates steadily increased to WS225 midweek and has now returned back down to WS212.5. The 140,000mt Basrah/Lavera market maxed out at WS121.69 to then end up at WS116.56, with wide reports of a WS110 on subjects at time of writing.
The Aframax market in the US-Caribbean region saw a significant cooling off period this week in the run up to the long Thanksgiving weekend. This put pressure on the red hot freight levels that had previously shown no sign of slowing. TD26, 70,000mt East Coast Mexico/US Gulf shed 40.62 points, down to WS679.38 ($217,984 per day round-trip TCE). By comparison the 70,000mt Covenas/US Gulf voyage saw minimal activity, but was led by the other behaviour in the region. The TD9 index subsequently dropped to WS623.13 (-17.5) (a daily round-trip TCE of about $180,000). For the longer-haul 70,000mt US Gulf/Rotterdam voyage, charterers were also able to chip away at freight early in the week and the run is currently pegged at WS393.57 – a 37.14 point drop from last week. At these levels the trip is still rendering $98,000 / day round trip TCE.
In Europe, 80,000mt Hound Point/Wilhelmshaven continued to gain traction with the run pegged at WS307.5 (+43.75) (a daily TCE of about $137,000 round-trip). In the Mediterranean, which remained very busy, particularly out of Libya, this week the 80,000mt Ceyhan/Lavera route saw a near WS50 point improvement to WS430, returning a daily round-trip TCE of $157,629.
Source: The Baltic Exchange