VLCC Tanker Market Improves | Hellenic Shipping News Worldwide

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LR2

The recent decline in MEG LR2 freight rates stalled this week as the market flattened. The MEG/Japan TC1 75kt index held around the WS105 level all week with corresponding TCE returns above $20,000/day based on the Baltic Description.

Westbound sailings on the TC20 90kt MEG/UK-Continent also saw similar falls either above or below the $2.9m mark.

The TC15 80kt Mediterranean/Eastern voyage saw the index flatten gradually this week from 2.99m to $2.96m.

LR1

The MEG LR1 freight also didn’t move this week. MEG/Japan’s TC5 55kt index spent most of the week in the WS110-111 region and managed to climb to WS114 by the end of the week.

The westbound trip on MEG/UK-Continent’s 65kt TC8 that ended the week was ultimately graded $57,000 higher at $2.57 million.

On the Continent, freight LR1 was not moved again this week still at WS115 on the TC16 60kt ARA/West Africa index.

TN

MR freight at MEG saw a welcome increase this week. MEG/East Africa TC17 35kt index changed from WS180 to WS227.5. This resulted in a 46% increase in Baltic roundtrip TCE to $24,600/day.

On the British Continent, MR strengthened slightly this week. The 37kt ARA/US-Atlantic Coast TC2 index is currently assessed at WS111 (+8.75). Therefore, the Baltic TCE for the move is taken to just above the $8,000 $/day level.

In the US Gulf region, the MR rate showed up and down movements this week. The 38kt US-Gulf/Continent TC14 trip started at WS182 and rocketed through the week to WS261. Round-trip TCE revenue increased from $24,300/day to $40,900/day. Caribbean voyages on TC21, the 38kt US-Gulf/Caribbean, jumped 40% this week to $1.25 million. The US-Gulf/Chile TC24 38kt Baltic cruise also rose with the index assessed up about $500,000 from last week at $2.75 million.

MR Atlantic Triangulation Basket TCE rose from $29,933/day to 45,865/day.

Handymax

In the Mediterranean, Handymaxes on TC6, 30kt Cross-Mediterranean, fell back by 20 points to WS130 with Baltic TCE around $6,800/day. The TC23 30kt Cross UK-Continent route was softened by 4 points to WS150.

VLCC

The VLCC market improved this week with larger gains in US Gulf export channels. Fares for a 270,000 mt Middle East Gulf to China (TD3C) leg rose again 3 points to WS94.72 which equates to daily round-trip TCE of $85,109.

In the Atlantic market, the 260,000mt West Africa/China (TD15) price has risen 4 points to WS92.81 giving a round trip TCE of $82,482. The US Gulf to China (TD22) market continues to rally, gaining over $1,800,000 on the week to $12,377,778 representing daily round trip TCE of around $62,960. The latest to be reported was a Thai charterer with a $12,400,000 price tag for disposal from China, while owner sentiment remains strong due to a tight Atlantic ship list despite more vessels matching the West on specification.

Suezmax

In the Suezmax sector, the market strengthened with the largest increase occurring in the Atlantic market. Fares for the 130,000 mt Nigeria/Continent sailing (TD20) are up 25 points from last Friday, now at WS131.94 which translates to daily return TCE of $64,394. Route TD27 (Guyana to Continent based 130,000 mt) along with West Africa, rose 27 points week on week to WS129.87 meaning daily round trip TCE was just over $63,000. The 135,000 mt CPC/Augusta route TD6 rose 8.5 points to WS149.33 delivering daily TCE of around $79,300. In the Middle East, the 140,000 mt TD23 Middle East Gulf to Mediterranean route (via the Suez Canal) increased 4 points to WS103.56.

Aframax

In the North Sea, rates for the 80,000 mt UK Transcontinental route (TD7) remained flat at WS142 giving a daily return TCE of more than $53,600 on a Hound Point to Wilhelmshaven basis.

In the Mediterranean, rates for the 80,000 mt Cross-Mediterranean (TD19) continued to rise, adding 12.5 points this week to WS171.36 (Ceyhan to Lavera base, which saw daily return TCE of over $50,100).

Across the Atlantic, markets made little gain. The 70,000 mt East Coast Mexico/US Gulf route (TD26) had a week-on-week gain of 3 points to be just shy of WS150 (giving a daily round-trip TCE of just over $32,500) and the 70,000 mt Covenas/US Gulf route (TD9) was about 2 points stronger at the WS145 mark (which means daily round-trip TCE of more than $31,000).

Fares for the 70,000 mt trans-Atlantic route US Gulf/UK Continent (TD25) rose another 9 points to just above WS167 giving a round-trip Houston/Rotterdam TCE base of around $43,500 per day.

On Vancouver exports, TD28 (80,000 mt of Vancouver crude to China) remained around $2,825,000 and TD29 (80,000 mt of Vancouver crude to Pacific Area Lightering points off USWC) remained at WS190.
Source: Baltic Exchange