VLCC
Another week of rates metaphorically stuck in the mire in this sector. In the Middle East the market for 280,000mt to US Gulf (routing via the Cape/Cape) remains in the WS18-18.5 region while rates for 270,000mt to China continue to be maintained at around WS31.5 (showing a round-trip TCE of $-4,300/day). In the Atlantic, rates for 260,000mt West Africa to China are also stuck at the WS33 mark (a TCE of $-1,400k/day round trip) and 270,000mt US Gulf to China saw a $40,000 drop to just above $4.02m (a roundtrip TCE of $1.3k/day).
Suezmax
In West Africa, a more populated position list enabled charterers to push rates down 3.5 points to WS51-52 level for the 130,000mt Nigeria/UK Continent market (meaning a round-trip TCE of just below zero). Meanwhile in the Mediterranean rates for 135,000mt Black Sea/Med fell 2 points to just below WS57 (a round-trip TCE of about $-7,800/day). The Middle East market has continued to be relatively busy although there is still sufficient tonnage to cover this extra activity, with rates for the 140,000mt Basrah/Med trip pegged at the WS26 mark.
Aframax
In the Mediterranean, the market for 80,000mt Ceyhan/Lavera lost a single point this week to about WS85 (showing a round-trip TCE of $1,400/day). In Northern Europe the market modestly weakened with the rate for 80,000mt Cross-North Sea easing back 1.5 points to WS94 (a round trip TCE of $-3,900/day). It was a similar story in the 100,000mt Baltic/UK Continent market with the rate at WS61.25 (a round trip TCE of about $-930/day). Across the other side of the Atlantic, the market has settled and rates for 70,000mt Caribbean/US Gulf are unmoved at just above WS75 (a round-trip TCE of $-3,500k/day) while the East Coast Mexico/US Gulf market slipped 1 point to WS75 also (a TCE of about $3,300k/day round trip). The market for 70,000mt US Gulf/UK Continent dropped 1.25 points to WS66.25 (showing a round trip TCE of $-2,700k/day, which would be positive basis 1 way econs).
Clean
The Middle East Gulf has seen an upturn all around this week. On the LR2s to Japan TC1 has come up 3.33 points to WS83.33, a round-trip TCE of $3,285/day. The LR1s have shown some improved activity, TC5 55k Middle East Gulf/Japan at WS104.29 up WS16.08 points, a round-trip TCE $5,974/day. TC8 Middle East Gulf/UK-Continent also had continued traction up to $24.39/ton (up $3.62/ton) yielding a round-trip TCE of $5,347/day (up $4,997/day). MR rates 35k Middle East Gulf/East Africa (TC17) also continued to rally 18.5 points to WS169.5, showing a round-trip TCE of $8,376/day.
The Mediterranean market has had another week of freight rates remaining generally sideways only with an incremental drop. On the Handysize TC6 30kt Skikda/Lavera ended up at WS119.06 (down WS0.94). The LR2s have been steady on TC15, 80k Mediterranean/Japan holding at around the $1.6m level.
The week has been consistently optimistic for the Baltic with rates climbing, TC9 30k Baltic/UK-Continent currently at WS143.57 (up WS14.28), giving a round-trip TCE of $5,569/day. On the UK-Continent levels have plateaued and are now dipping, TC2 37k UK-Continent/US Atlantic Coast at WS138.06 (down WS3.61), showing a round-trip TCE of $6,312/day
The LR1s on TC16 60k Amsterdam/Offshore Lome were relatively stable and showed minor fluctuations up and down settling at WS85 (Down WS1). TC19 37k Amsterdam to Lagos also began to show a decline to WS143.75 (Down WS5.42).
An unrushed start of the week in the Americas has led to a testing of rates. TC14 38k US Gulf/UK-Continent route now at WS83.57 (down WS7.86) and TC18 35k from US Gulf/Brazil, also under a similar pressure at WS122.38 (down WS8.04).
The MR Atlantic basket TCE dropped from $9,273/day to $8,289/day.
Source: The Baltic Briefing