AlwaysFree: Baltic Exchange's Tanker Report On May 5, 2023 - Week 18

According to the Baltic Exchange’s Weekly Market Roundups published on May 5, 2023:

Clean

LR2

LR2’s in the MEG took a major retest down this week. TC1 has dropped 33.13 points to WS147.5 and for a trip west on TC20, a widely reported fixture late in the week, saw a $842,000 chunk taken out of the index to $3,657,143.

West of Suez, Mediterranean/East LR2’s have been sombre. The TC15 index has dropped $254,000 to $3,220,833.

LR1

In the MEG, LR1’s have been relatively steadfast. TC5 took a dip from WS200 to WS191 end of week and TC8 shed $325,000 from $3,849,950 to $3,524,950 off the back of the LR2’s softening.

On the UK-Continent, TC16 remained mute this week, seeing the index drop from WS155 to WS138.75. Despite this, the round trip TCE is still up in the mid $26,000 /day.

MR

MEG MR’s saw more negative freight movements this week as a result of the market sedation in the Far East. TC17 lost 37.86 points to WS191.43.

Steady activity on the UK-Continent this week drove a tick up in freight levels. TC2 peaked at WS173.89 mid-week then resettled at WS169.72 (a 26.66 point improvement on this time last week). TC19 followed suit, topping out at WS182.86 and currently pegged at WS178.85.  This has taken the round trip TCE’s for these runs back over the $20,000/day mark.

In the US Gulf, the MR’s returned to life this week and rates rebounded. TC14 climbed back up over the WS100 mark to WS110.42 with that level reportedly done several times mid-week. TC18 added 25 points to the index to WS178.75 and a trip to the Caribbean on TC21 hit the $700,000 mark again (+$191,667).

The MR Atlantic Triangulation Basket TCE improved 52% to $25,949.

Handymax

Mediterranean Handymax’s look to have levelled off this week and TC6 has hovered around the WS145-150 mark. Up on the UK-Continent TC23, which dipped 15 points to WS153.13.

VLCC

The VLCC market was quiet this week, with the Far Eastern holiday season under way and, because of the resultant limited demand, rates fell. The rate for 270,000 mt Middle East Gulf to China retracted by about 10 points to WS46.41, which corresponds to a round trip TCE of $27,400 per day basis the Baltic Exchange’s vessel description. The rate for 280,000mt Middle East Gulf to US Gulf (via the cape/cape routing) is now assessed at almost 5 points lower than a week ago at WS33.17.

In the Atlantic market, the rate for 260,000mt West Africa/China needed testing, and on Thursday the market was assessed at WS45, 12 points down week-on-week, which shows a daily round voyage TCE of $23,700 after Unipec were reported to have taken a Koch relet on subjects at this level.

The rate for 270,000mt US Gulf/China is now assessed $794,445 lower than a week ago at $7,161,111 ($27,200 per day round trip TCE), unaided by very little interest or activity.

Suezmax

The Black Sea and Mediterranean markets were flat this week. The rate for 135,000mt CPC/Med remains at around WS122.5 (a round trip TCE of $53,900 per day). In the Atlantic region, the Caribbean and US Gulf markets drew tonnage away from West Africa and rates firmed for 130,000mt Nigeria/Rotterdam, which now sits 2.5 points up on last Friday’s assessment at WS92.25 (a round trip TCE of $35,600 per day). In the Middle East, the rate for 140,000mt Basrah/Lavera recovered about 4 points to just shy of WS60.

Aframax

In the North Sea market, the rate for the 80,000mt Hound Point/Wilhelmshaven route remained flat at around the WS130 level (showing a round-trip daily TCE of $38,300).

In the Mediterranean, the rate for 80,000mt Ceyhan/Lavera firmed 10 points to WS162.5 (a daily round trip TCE of $51,300).

Across the Atlantic, the Stateside Aframax market reached bottom last Friday and the bounce-back has been gathering pace this week. A tonnage tightening situation and a sudden in-flux of cargo enquiry mid-week gave the owners all they needed to regain lost ground.

The rate for 70,000mt East Coast Mexico/US Gulf is now almost 97 points higher than a week ago at WS188.75 ($57,000 per day round-trip TCE) and the rate for 70,000mt Covenas/US Gulf has risen 82.5 points to WS170 (a daily round-trip TCE of $44,300).

For the trans-Atlantic route of 70,000mt US Gulf/Rotterdam, the rate rallied 45 points to WS170 (showing a round trip TCE of $44,400 per day). 

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