Clean

LR2

MEG LR2 freight moved dramatically this week. The TC1 75kt MEG/Japan index ultimately went from WS222 to WS446, with the corresponding TCE climbing to $120,000/day on Baltic description round trip. A voyage west saw the TC20 90kt MEG/UK-Continent index also rise to $8.51 million (+$3.7 million). The TC15 80kt Mediterranean/East index went up by $2.1 million to $7 million this week.

LR1

The TC5 55kt MEG/Japan index currently sits at WS469, up 243 points. A run west on TC8 65kt MEG/UK-Continent ended the week with the index up $2.61 million to over $6.23 million. On the UK-Continent, LR1 freight added 82 points this week to WS243 for the TC16 60kt ARA/West Africa index.

MR

The TC17 35kt MEG/East Africa index added 145 points to WS420. This took the Baltic TCE for the route up to $47,300 /day round trip. On the UK-Continent, MRs climbed dramatically this week. The TC2 37kt ARA/US-Atlantic Coast index was assessed 107 points higher than last week at WS236 with the Baltic TCE for the round trip at $24,800/day.

In the US Gulf, MR freight also spiked. The TC14 38kt US Gulf/UK-Continent run is currently marked at WS397 after beginning the week at WS264. The Baltic round trip TCE for the run is now at $58,800/day. The Caribbean voyage on TC21, 38kt US-Gulf/Caribbean is presently pegged at $2.31 million (up $1.12 million).

The MR Atlantic Triangulation Basket TCE went from $41,800/day to $75,400/day.

Handymax

In the Mediterranean, Handymax’s on TC6, 30kt Cross-Mediterranean index jumped 225 points to WS424 this week. The TC23 30kt Cross UK-Continent route firmed up to WS365 this week (+105), which generates $65,900/day on Baltic TCE round trip.
 

VLCC

United States and Israeli action against Iran and the Iranian retaliatory action has caused all shipping markets to increase exponentially. While the Straits of Hormuz are not officially closed and the risk remains heightened, Baltic’s panellists feel able to price Middle East loading for the crude oil shipping market.

In that vein, while mostly theoretical, the TD3C route (270,000 mt Middle East Gulf to China) is being assessed 248 points higher than a week ago at WS473.33, which corresponds to a daily round-trip TCE of $485,959 for the standard Baltic VLCC. The Saudis are actively switching their oil output from Ras Tanura to Yanbu via the Petroline (Saudi East-West) pipeline, but this has limitations on their capacity. 

In the Atlantic market, rates have spiked significantly due mostly to the Iran situation, and the rate for 260,000 mt West Africa/China (TD15) climbed 57 points to WS258.44, giving a round voyage TCE of $242,782 while the US Gulf to China route (TD22) has risen by more than $10,800,000 to $28,588,889, which gives a daily round trip TCE of $210,613.
 

Suezmax

In the Suezmax sector, all routes have made huge gains this week, due in the most part to the effects of the VLCC market. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) trip is now 107.5 points firmer than a week ago at WS329.44, which translates into a daily round-trip TCE of just shy of $170,000. The TD27 route (Guyana to UK Continent basis 130,000 mt) gained 96 points to the WS320 level giving a daily round trip TCE of about $166,500. In the Black Sea, rates for the TD6 route of 135,000mt CPC/Augusta improved by 100 points to WS340, meaning a daily TCE of just over $230,500. In the Middle East, the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) is assessed at about WS525, an increase of 380 points.

The new Baltic route of 145,000 mt USG/UKC (TD33) is now 121 points higher at just over WS360.


Aframax

In the North Sea, the rate for 80,000 mt Cross-UK Continent route (TD7) gained 45 points to WS245, giving a daily round-trip TCE of about $144,500 basis Hound Point to Wilhelmshaven.

In the Mediterranean, the rate for 80,000 mt Cross-Mediterranean (TD19) has increased by 101 points to just over WS330 (basis Ceyhan to Lavera, that shows a daily round trip TCE of just above $127,200).

Across the Atlantic, the market has not been untouched and rates have significantly improved. The 70,000 mt East Coast Mexico/US Gulf route (TD26) climbed 104 points to about WS437 (giving a daily round-trip TCE of almost $141,500) and the 70,000 mt Covenas/US Gulf route (TD9) is now 102 points higher than last Friday at WS423 (translating into a daily round trip TCE of over $124,000).

The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) has ascended 103 points to WS393.06, which gives a round trip TCE basis Houston/Rotterdam of almost $111,600/day.

On the Vancouver exports, the rate for TD28 (80,000 mt crude oil Vancouver to China) has gone up by $950,000 to $4,462,500, while TD29 (80,000 mt crude oil Vancouver to Pacific Area Lightering point off the US West Coast) gained almost 60 points to WS342.5.