VLCC

There has been plenty of activity in the Middle East this week giving a much needed sentiment boost to the region. However, between an ample supply of vessels and contracts of affreightment, rates have not moved significantly. The 280,000mt to US Gulf (routing via the Cape/Cape) stays steadily in the WS18 region while 270,000mt to China - the busiest route this week - is valued at WS32.86 (showing a round-trip TCE of $-1008/day). In the Atlantic, open enquiry has been lacklustre by comparison and rates for 260,000mt West Africa to China are still at the WS33 mark. Over in the United States Gulf, 270,000mt US Gulf to China saw an approximate $35k upturn with a widely reported charter at $3.95m.

 

Suezmax

In West Africa there has been increased activity as the week has gone on. This, combined with some replacement business, affected a moderate 1.46 point improvement in rates for the 130,000mt Nigeria/UK Continent market to the WS57.98 level (a round trip TCE of $3742k/day). Rates for 135,000mt Black Sea/Med also held around the WS62.5 supported by continued enquiry in the Mediterranean.

The Middle East market was relatively quiet this week, but rates have held for the 140,000mt Basrah/Med trip at around WS25-26 underpinned by the activity of the other regions.

 

Aframax

In the Mediterranean, 80,000mt Ceyhan/Lavera is still at the WS87.5 mark despite some end of week activity prior to the U.K. bank holiday and plenty of available tonnage.

In Northern Europe both markets have seen an overdue tick up. 80,000mt Cross-North is now at the WS92.19 level (a round trip TCE of $-4415/day) while the 100,000mt Baltic/UK Continent rose 1.72 points to WS59.06. This could indicate the start of the higher winter freight rates.

Across the Atlantic, 70,000mt US Gulf/UK Continent has gained some traction after an active week and the market improved by 2.08 points to WS72.5 level. The Caribbean market has been relatively immobile, however, and 70,000mt East Coast Mexico/US Gulf and 70,000mt Caribbean/US Gulf are at WS81.88 and WS79.69 respectively. With the bad weather season approaching the region's freight rates may see an impact.

 

Clean

The Middle East Gulf started balanced this week. And, after some sustained activity, owners' patience paid off. We saw an eventual firming towards the end of the week. On the LR2s to Japan, TC1 has risen about 7.5points to back over the WS100 mark - a round-trip TCE of $8.5k/day. The LR1's have held steady and TC5 55k Middle East Gulf / Japan now in the WS130 region, a round-trip TCE $11.8k/day. MR rates 35k Middle East Gulf / East Africa (TC17) jumped 15.5 points to WS194.5.

The Mediterranean Handy market has seen more sideways moves this week despite plenty of life in the market, TC6 30kt Skikda / Lavera stable at WS115. The LR2's in the region have been subdued this week and remain to be tested. TC15, 80k Mediterranean / Japan currently marked around $1.65m.

Rates appear to have reached a floor in Baltic Handy market, TC9 30k Baltic / UK-Continent dropped to WS120 (Down WS0.71). On the UK-Continent MR freight levels have rebounded from a busy end of week, TC2 37k UK-Continent / US Atlantic Coast is now at WS107.78 (Up WS7.22), showing a round-trip TCE of $317/day. TC19 37k Amsterdam to Lagos also propelled up off the back of TC2 and is now WS115.83 (Up WS11.66). On the LR1's, TC16 60k Amsterdam / Offshore Lome stays at around Ws80-82.5.

In the Americas, open interest covered at market levels and plenty of vessels are available for the remaining cargoes. TC14 38k US Gulf / UK-Continent route is now around WS75 and TC18 35k from US Gulf / Brazil, corresponded and ended up at WS105 (Down W1.25).

The MR Atlantic basket TCE dropped from $4483/day to $4273/day.