Clean
LR2
LR2 freight in the MEG continued its downward trajectory this week. The TC1 75kt MEG/Japan index dropped 23.61 points to WS120 and a TC20 90kt MEG/UK-Continent voyage also went from $4.03 million to $3.59 million.
West of Suez, Mediterranean/East LR2’s plateaued this week, reflected in the TC15 index hovering around the high $2.8 million to low $2.9 million range.
LR1
MEG LR1’s continued to drop in value this week. The TC5 55kt MEG/Japan index went from WS145.94 to WS139.98. A voyage west on TC8 65kt MEG/UK-Continent also came down by $221,455 to $2.76 million.
On the UK-Continent, LR1 freight remained stable for the seventh week in a row. The TC16 60kt ARA/West Africa index dropped a modest 2.81 points to WS112.5.
MR
MRs in the MEG also were subject to downward pressure this week. The TC17 35kt MEG/East Africa index was assessed 32.14 points lower than last week taking it to WS190.
UK-Continent MR freight rates were also driven down relatively firmly this week. The TC2 37kt ARA/US-Atlantic coast went from WS103.75 to WS90. This all but halved the current Baltic TCE round trip to $3,117/day.
USG MRs saw a welcome spike in freight to then return downward. The TC14 38kt US-Gulf/UK-Continent trip peaked at WS232.14 mid-week up from WS219.29 but has since come back to WS211.43 at time of writing. A Caribbean trip on TC21, 38kt US-Gulf/Caribbean ultimately settled at the end of the week down $175,000 at $1.06 million after topping out at $1.32 million. The MR Atlantic Triangulation Basket TCE went from $36,079 to $32,553.
Handymax
The Mediterranean Handymax of TC6, 30kt Cross Mediterranean came down by 35.55 points to WS130.56. Up on the UK-Continent the TC23 30kt Cross UK-Continent also went from WS135 to WS113.33.
VLCC
The calming of the recent tension in the Middle East and the onset of the summer lull, or Q3 as some refer to it, has seen the bottom fall out of the market, with VLCCs riding the grey waves of misery. The rate for the 270,000 mt Middle East Gulf to China trip (TD3C) has fallen further, losing six points this week to WS47.4, corresponding to a daily round-trip TCE of $26,512. In the Atlantic market, the rate for 260,000 mt West Africa/China (TD15) has continued the downward spiral, falling by four points to WS49.56, giving a round voyage TCE of $29,598/day. In the US Gulf region, the rate for the TD22 route of 270,000 mt US Gulf to China has eased by over $500,000 to a close to the $7,000,000 mark, which shows a daily round trip TCE of about $33,546.
Suezmax
The Suezmax market has suffered the same fate as their bigger cousins, with rates falling and each fixture in the West being less than the last.
The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) slumped six points to WS82.22, with the real possibility of falling further. The current daily round trip TCE translates into just over $30,600. The TD27 route (Guyana to UK Continent basis 130,000mt) lost four points to WS81.94, meaning a daily round trip TCE of just over $30,000.
The TD6 route of 135,000mt CPC/Augusta fell 10 points to WS93.05, giving a daily TCE of a little over $29,300. In the Middle East, owners managed to buck the trend and raise the rate for the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) by five points to the WS97.5 level.
Aframax
In the North Sea market for the 80,000 mt Cross-UK Continent route (TD7), the rate slipped back down two points to the WS120 mark, giving a daily round-trip TCE of about $31,700 basis Hound Point to Wilhelmshaven. In the Mediterranean, the rate for 80,000 mt Cross-Mediterranean (TD19) lost more than six points to about WS129 (basis Ceyhan to Lavera, showing a daily round trip TCE of a little over $26,500).
Across the Atlantic, as participants prepped for the 4th of July holiday, rates eased slightly. The 70,000 mt East Coast Mexico/US Gulf route (TD26) and the 70,000mt Covenas/US Gulf route (TD9) has fallen 4-5 points this week to the WS142 and WS138 level, respectively. This translates into a daily round-trip TCE of about $27,000 and $25,800. The rate for the transatlantic route of 70,000mt US Gulf/UK Continent (TD25) slipped a meagre point to WS145.28, giving a round trip TCE basis Houston/Rotterdam of just over $33,000/day.
This week, Baltic Exchange also started a public trial of two new Aframax routes: TD28 (Vancouver to Ningbo) and TD29 (Vancouver to PAL).
Source: Baltic Exchange