The Baltic Exchange: Tanker report - Week 42


The Baltic Exchange: Tanker report - Week 42



LRs in the MEG have again been at the forefront of activity this week. Although rates have not climbed exponentially, sentiments have been firm in the MEG all week for the largest of CPP vessels. TC1 hopped up 19.72 points to WS171.11 and for a run westward on TC20 the index improved $343,750 to $4.475m. 

West of Suez, Mediterranean/East LR2’s on TC15 improved an optimistic $333,333 this week to $3.57m. 


In the MEG, LR1’s have not been as active as the 2’s this week. Freight rates have been held up by the strong sentiments from above. TC5 held stable in the WS171-176 range all week. Similarly on a trip to the UK-Continent on TC8 levels hover around the $3.6m mark all week.

On the UK-Continent, the TC16 index, for the third week ticked along at around WS155.


MR’s in the MEG have been a touch lacklustre this week. Supply/demand remains in balance and the improving LR’s will have helped prevent rates from dipping. The TC17 index has, as a result, hovered around the WS235-245 level.

UK-Continent MR’s have suffered from a distinct lack of enquiry this week. Subsequently TC2 and TC19 rates come under pressure and we saw both drop around 12-13 Worldscale points with TC2 currently pegged at WS142.5 and TC19 at WS152.19. Another bout of downward movement will take the TC2 Baltic TCE below the $10,000/day level.

A quieter start to the week combined with a notable oversupply of vessel led the USG MR’s to soften again this week. For the sixth time this year TC14 dropped into double figures losing 22.38 points to currently sit at WS99.29. TC18 also went below WS200 this week with the index 41.45 points lighter at WS179.29 at time of writing. A short run to the Caribbean on TC21 also lost 20% of its value this week and is pegged at $596,429 for the moment. 

The MR Atlantic Triangulation Basket TCE lost just under 30% of its value shedding $6,591 to $15,777.


In the Mediterranean, Handymaxes looked to have reached a balanced position this week. A lack of enquiries slimmed down the available tonnage kept the TC6 index around the WS185 level. 

Up on the UK-Continent, the TC23 index recovered to the tune of 6.94 points to WS173.61. 


The market powered on from last week for the first couple of days, with rates climbing with each fixture until Wednesday when cracks started to appear in the owners’ steadfastness. The market is now softer than a week ago and sentiment is lower. The rate for 270,000 mt Middle East Gulf to China rose to WS63 and has now fallen back 2.5 points week-on-week to WS55.54 corresponding to a daily round-trip TCE of $28,774 basis the Baltic Exchange’s vessel description. The 280,000 mt Middle East Gulf to US Gulf trip (via the cape/cape routing) is now assessed 0.5 points up on a week ago at WS32.

In the Atlantic market, a similar tale was evident with the 260,000 mt West Africa/China rate rising to WS64 then falling back two points since last Friday to WS58.85 (which shows a round voyage TCE of $33,896/day). The rate for 270,000 mt US Gulf/China ascended to $10,200,000 but has been reduced by $397,222 week-on-week to $9,902,778 ($42,742/day round trip TCE).


Suezmaxes in West Africa have had another steady week of gains. The rate for 130,000 mt Nigeria/UK Continent rose to WS121 but has now slipped back to three points above last Friday’s number to WS119.55 (a daily round-trip TCE of $47,790). In the Mediterranean and Black Sea region, the 135,000 mt CPC/Med route, buoyed by a firm Aframax market adding support, rocketed 35 points to WS135.05 (showing a daily TCE $59,624 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean amassed eight points over the week to WS82.83.


In the North Sea, the rate for the 80,000 mt Cross-UK Continent route continued the upward trajectory, rising 24 points to WS153.57 (showing a round-trip daily TCE of $51,900 basis Hound Point to Wilhelmshaven). In the Mediterranean market where demand was high, the rate for 80,000 mt Cross-Mediterranean is another 37 points firmer at WS216.06 (basis Ceyhan to Lavera, which shows a daily round trip TCE of $75,871). 

On the other side of the Atlantic, the market continued to firm for the shorter voyages, while trans-Atlantic was softer. The rate for 70,000 mt East Coast Mexico/US Gulf has shot up another 55 points since last Friday to WS267.81 (a daily round-trip TCE of $86,179) and the 70,000 mt Covenas/US Gulf rate escalated 42 points to WS243.44 (a round-trip TCE of $70,211/day). The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent was reduced by 10 points to WS201.88 (a round trip TCE basis Houston/Rotterdam of $51,653/day) as owners seemingly wanted to get back to Europe.

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