LR’s in the MEG lost some steam this week and freight rates took a downturn. The 75kt MEG/Japan TC1 index dropped 31.66 points to WS322.78. The 90kt MEG/UK-Continent TC20 run to the UK-Continent also came down $212,500 to $8.475 million.
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West of Suez, Mediterranean/East LR2’s on TC15 saw a significant upturn, the index climbed $641,000 to $5.608 million.
In the MEG, LR1 freight has also taken a tumble. The 55kt MEG/Japan index of TC5 is currently marked at WS356.13, down 21.68 points. The 65kt MEG/UK-Continent of TC8 hovered around the $7.2 million to $7.4 million mark all week.
On the UK-Continent, the 60kt ARA/West Africa TC16 index saw a big upturn mid-week after a market reported fixture at WS245. This has taken the index up to its current mark of WS243.81, a gain of 38.87 points.
MRs in the MEG have taken a significant re-correction down this week, the TC17 index shed 26.42 points to WS445.71 with reports of WS425 on subjects in the market at time of writing.
UK-Continent MRs have been reportedly soft this week with charterers in the driving seat. As a result 37kt ARA/US-Atlantic coast of TC2 index lost 61.39 points (26% of its value) and is currently marked at WS164.64. This has taken the Baltic round trip TCE for TC2 down from $28,000 / day round trip to $16,000 /day, a 42% drop. On a TC19 run (37kt ARA/West Africa) the index has followed suit of TC2 and dropped from WS246.88 to WS184.38 this week.
The USG MRs followed a peak and trough pattern this week. TC14 (38kt US-Gulf/UK-Continent) went from WS164.29 to WS176.07 and then back to WS164.64. The 38kt US Gulf/Brazil on TC18 mirrored this, peaking at WS225 from WS215 to then return back to WS218.57 by end of the week. The 38kt US-Gulf/Caribbean TC21 steadily ticked down this week from $715,000 to $696,429.
In the Mediterranean, Handymax’s showed a steep downward trajectory and the TC6 index went from WS307.78 to WS245.
Up in North West Europe, the TC23 30kt Cross UK-Continent index had 96.39 points cut from it this week falling to WS225.83.
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The market was mostly static this week with the rate for the 270,000 mt Middle East Gulf to China route hovering around the WS57.5 to WS58 level. This translates into a daily round-trip TCE of about $33,500 basis the Baltic Exchange’s recently updated vessel description.
In the Atlantic market, a similar situation was experienced for the 260,000 mt West Africa/China trip where the rate was held at the WS59 to WS59.5 mark which shows a round voyage TCE of about $35,500 per day) while the rate for 270,000 mt US Gulf/China slipped $122,222 to $8,811,111 (which provides a round-trip daily TCE of $42,245).
Suezmaxes in West Africa were slightly weaker this week with the rate for 130,000 mt Nigeria/UK Continent three points softer than last Friday at WS105.55 (a daily round-trip TCE of $39,583). In the Mediterranean and Black Sea region the rate for 135,000 mt CPC/Med remained steady at a fraction below WS130 (showing a daily TCE of a little above $53,500 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean was lifted eight points to WS123.78 with the continued risks involved in a Red Sea transit being the main driving force behind the rise.
In the North Sea, the rate for the 80,000 mt Cross-UK Continent route fell eight points to WS173.70 (showing a round-trip daily TCE of $65,589 basis Hound Point to Wilhelmshaven).
In the Mediterranean market the rate for 80,000 mt Cross-Mediterranean has weakened again, by almost 18 points since last Friday to WS195.39 (basis Ceyhan to Lavera, that shows a daily round trip TCE of $60,792).
Across the Atlantic, the Stateside market has continued on a downward spiral. The rate for 70,000 mt East Coast Mexico/US Gulf (TD26) and 70,000 mt Covenas/US Gulf (TD9) both had 52.5 points deducted from last Friday’s assessments, to WS213.13 (a round-trip TCE of $59,500 per day) and WS204.38 (a round-trip TCE of $49,846 per day) respectively. The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) is now 19 points weaker at WS185.31 (a round trip TCE basis Houston/Rotterdam of $43,648 per day).
Source: Baltic Exchange