In the Middle East, the market for 280,000mt to US Gulf (routing via the Cape/Cape) continues to be assessed around the WS18-18.5 mark, while rates for 270,000mt to China have improved one point WS32.5 (a round-trip TCE of minus $3.5k/day). In the Atlantic, rates for 260,000mt West Africa to China have modestly risen two points to WS34 (minus $800/day TCE) and 270,000mt US Gulf to China is now assessed $30k higher at $4.03m level (a TCE of about $1k/day).
In the 130,000mt Nigeria/UK Continent market rates have improved again – up 2.5 points to the WS52.5 (a round-trip TCE of about minus $400/day). Meanwhile, in the Mediterranean, the tightening Aframax market has meant that Suezmaxes are now able to take advantage of fixing part cargoes which has had the knock-on effect of raising the market rate for 135,000mt Black Sea/Med to WS62, up three points from a week ago (a round-trip TCE of about minus $3.7k/day). The market for 140,000mt Basrah/Med has gained 4.5 points to WS33 and reports overnight of Shell taking a Dynacom managed vessel at WS35, albeit as a replacement.
In the Mediterranean, the market has tightened considerably with rates for 80,000mt Ceyhan/Lavera climbing 14 points to WS105 (showing a round-trip TCE of about $9k/day). However, this may get capped by the Suezmaxes that are able to take part cargoes. In Northern Europe a similar situation has been seen with Suezmaxes able to take advantage of improved Aframax rates where the market for 80,000mt Cross-North Sea has climbed 13 points to WS112.5 level (just under $10k/day TCE round trip). In the 100,000mt Baltic/UK Continent market a 14 point increase was seen with rates now around the WS82.5-85 region (a round trip TCE of $8.1k/day). Across the Atlantic the market has again trawled the floor as rates for 70,000mt Caribbean/US Gulf and East Coast Mexico/US Gulf are still floundering around the WS80 mark (a TCE of about minus $2.8k/day and minus $2.3k/day round trip respectively). The 70,000mt US Gulf/UK Continent market eased a point back to WS70 again (which shows a TCE of about minus $2k basis a roundtrip, turning positive basis single trip economics).
In the Middle East Gulf, it has been another uneventful week on both LR2s and LR1s with the rates static over the week. The market for 75,000mt to Japan has settled in the mid WS70s. The 55,000mt size rates have likewise been flat in the high WS80s. The MRs have made no headway with rates for 35,000mt in to East Africa very marginally softer at around WS147.5. For owners trading MRs from the Continent it has likewise been a lacklustre week with rates for 37,000mt to USAC largely unchanged. There was talk of WS115 having been agreed midweek but thereafter rates have been hovering closer to WS110 level. Voyages from Continent down to West Africa dipped 2.5 point to WS117.5 region. The 38,000mt backhaul market from US Gulf to UKC had a week to forget with rates easing around 10 points to just above mid WS60s. A deal was concluded at WS65. But this was said to have been on a ship that needed to come back across, so may not necessarily be a true reflection of the market. Runs to Brazil have also seen rates eroded, with the market here now assessed around 11 points lower at just below WS112.5. For owners plying the 30,000mt clean trade in the Mediterranean it has been an uneventful week with rates steady in the low WS120s.
Source: Hellenic Shipping