Tanker report – Week 3
This sector sunk a little further this week. For 280,000mt Middle East Gulf to USG (via Cape of Good Hope) the market is assessed half a point lower at the WS17.5-18 level. Weakness was also been seen in the 270,000mt Middle East Gulf to China route where rates have slipped a point to WS35.5 region (which shows a round trip TCE of minus $6,300 per day). In the Atlantic region the market has similarly fallen with the rate for 260,000mt West Africa to China a point lower at the WS37-37.5 mark (a round-trip TCE of minus $3,000 per day). The 270,000mt USG to China, meanwhile, is now rated over $43,000 less than a week ago at $4.68 million (a round-trip TCE of minus $2,400 per day).
The rate for 130,000mt Nigeria to UKC has recovered some of the recent lost ground, climbing four points to the WS57-57.5 level (a round-trip TCE of minus $1,300 per day). The 135,000mt Black Sea to Augusta gained five points to the WS67 region (a round-trip TCE of minus $3,600 per day). The 140,000mt Basrah to West Mediterranean market saw reports of Exxon, Iplom and Tupras fixing in the low to mid WS30s and the latest rate assessment is down half a point week-on-week at WS32.
The 80,000mt Ceyhan to Mediterranean market continued its upward trajectory early on. But, by the end of the week, it took a stumble with rates coming back down to the WS100 mark - off three points from last week. This shows a round-trip TCE of $5,700 per day). In Northern Europe rates for 80,000mt Hound Point to UKC plateaued at just below WS95 (a round-trip TCE of minus $3,700 per day) while 100,000mt Baltic to UKC rates fell another eight points to WS90 (a TCE of $11,200 per day). Across the other side of the Atlantic, rates were slightly firmer on the whole. 70,000mt US Gulf to UK-Continent recovered five points to almost WS105 (a round-trip TCE of $5,400 per day). Meanwhile, in the local markets, the 70,000mt Covenas to US Gulf trip is assessed 1.5 points higher than a week ago at WS97 (minus $230 per day round-tip TCE) and 70,000mt EC Mexico to US Gulf rates remained steady again at just shy of WS100 ($2,000 per day round-trip TCE).
In the Middle East Gulf the LR2s of TC1 are currently sat at WS77.86 (-WS10) - a round trip TCE of $2,093 per day - with WS75 reported on subjects at time of writing. The LR1s have held stable thus far at around WS97.5 for TC5 55,000 Middle East Gulf to Japan, a round-trip TCE of $2,045 per day. On the MRs TC17 rose optimistically this week to WS191.25 (+WS10.42). West of Suez, the LR2s, TC15 80,000 Mediterranean to Japan has risen incrementally off the back of improved activity and by the end of the week was around the $1.87 million mark.
On the LR1s, TC16, 60,000 Amsterdam to Offshore Lomé also had an upturn - rising 4.64 points to WS105, a round-trip TCE of $5,736 per day.
On the UK-Continent, lighter MR activity has led to tonnage supply rising and freight levels coming under pressure during the week. TC2 37,000 UK-Continent to US Atlantic Coast is currently pegged at WS130 (-WS8.89). TC19 37,000 Amsterdam to Lagos has dropped in parallel and lost another WS10.5 points to WS134.64 (a round trip TCE of $5,092 per day). In the Americas, both MR routes have suffered this week. However, the high bunker prices may have created a floor for freight rates for the moment. TC14 38,000 US Gulf to UK-Continent is now at WS 89.29 (-WS6.07) and TC18 38,000 from US Gulf to Brazil WS 134.29 (+WS10). The MR Atlantic basket TCE dropped from $9,735 per day to $6,780 per day. The Baltic Handymax market, meanwhile, has seen less activity than previous weeks. The TC9 30,000 Baltic to UK-Continent is now at WS175 (-WS15). In the Mediterranean, softening pressure has continued and the Handymax rates have again traded off further. TC6 30,000 Skikda to Lavera has dropped from WS17.19 to WS 152.19.