The Middle East Gulf CPP market has seen a mix of movements this week on the different sizes. On the LR2s TC1 continued its upward trend rising 22.59 points to WS226.88 with reports of WS230 on subjects for this run on Friday morning.

LR1s have been stable with sufficient tonnage and cargoes around to maintain last done rates. We have seen TC5 repeated at W290, which is where the index has floated around (+/- a few WS points) all week. The MRs continued their resurgence this week seeing the TC17 index jumping 30.83 points to WS495 and firmly taking the round trip TCE for this voyage up into the high $40,000s.

In the West, the LR2s of TC15 have ticked up a little this week this benchmark currently sits at $3.95m (+$70,000), we understand this is off the back of the improved TC1 market. On TC16 the LR1s has been steady all week pegged around the WS230 mark.

On the UK-Continent the MR freight levels have suffered as supply has outweighed demand with reports of vessels also ballasting in. TC2 has hemorrhaged 38.61 points to end up at 275.83 by the end of the week ($22,700 per day round trip TCE) and TC19 also lost 40.71 points to currently sit at WS282.86.

The USG MR market has been retested upwards this week. Between vessel ballasting away, Panama Canal delays and higher activity levels TC14 has hiked up to WS220.83 (-WS39.16) and TC18 has similarly risen WS41.66 to WS323.33 ($34,800 per day round trip TCE).The MRA TCE saw an upturn from 35,213 to 37,353.

On the Handymax cross Mediterranean freight levels continued to slide, TC6 lost another WS51.87 to end up at WS219.38 by the end of the week.

In the Baltic, TC9 has still held on at around WS505 this week with the TCE continuing at $60,00 per day.


VLCC rates continued climbing this week. 270,000mt Middle East Gulf/China rates improved by three points to the WS61.5 level (a round-trip TCE of $4,800 per day), while the rate for 280,000mt Middle East Gulf/USG (via Cape of Good Hope) gained 1.5 points to WS35.5. In the Atlantic, another active week resulted in rates for 260,000mt West Africa/China rising three points to almost WS62.5 ($6,300 per day round-trip TCE) and 270,000mt US Gulf/China went up $268,750 to a little over $7.45 million (showing a round-trip TCE of $3,100 per day).


Rates for 135,000mt Black Sea/Augusta climbed 41 points to WS202 (a round-trip TCE of $82,500 per day) on the back of increasing demand in other nearby regions causing the tonnage list to be significantly squeezed. Rates for the 130,000mt Nigeria/UKC trip, despite little activity, rose six points midweek and now remain steady at the WS140 level (a round-trip TCE of $36,300 per day). In the Middle East the rate for 140,000mt Basrah/West Mediterranean gained four points to WS83.


The Mediterranean market got off to a slow start then gathered a lot of pace midweek. The rate for 80,000mt Ceyhan/West Mediterranean rocketed 92 points week on week to WS271.5 (a round-trip TCE of $78,200 per day).

In Northern Europe the rate for 80,000mt Hound Point/UK Continent eased a further six points to WS191.5 (a daily round-trip TCE of $53,900). For the 100,000mt Primorsk/UK Cont route rates fell eight points to WS231.5 (a round-trip TCE of $74,000 per day).

Across the Atlantic, a mini resurgence occurred early on. However, at the time of writing the market is on the slide. Rates for 70,000mt EC Mexico/US Gulf, having climbed 10 points to WS310 by midweek, were last assessed on Thursday at WS304 (a round-trip TCE of $70,100 per day).

The 70,000mt Caribbean/US Gulf trip faced a similar situation with rates climbing 20 points to WS263 by midweek but have now slipped to the WS250/252.5 region (a round-trip TCE of about $45,600). For the transatlantic trip of 70,000mt US Gulf/UK Continent rates have climbed steadily and are now assessed 29 points firmer than a week ago at WS253 ($45,900 per day round-tip TCE).

Source: Hellenic Shipping News