Markets

The VLCC Market: Is The Bottom In?

Pure
LR2

MEG LRs were under increasing pressure again this week. The 75Kt MEG/Japan TC1 index added 15.28 points to WS135.28. TC20’s 90kt MEG/UK-Continent was similarly discounted to $4.2 million (down $356,250). West of Suez, Mediterranean/ LR2’s in TC15 fell $641,000 below $4 million to $3.49 million.

LR1
At MEG, the LR1’s followed their older counterparts this week. The 55kt MEG/Japan TC5 index was down 17.18 points at WS138.13 while the 65kt MEG/UK-Continent TC8 was down $285,350 to $3.45 million. UK-Continent, 60Kt ARA/West Africa TC16 index continued in the mid WS140s but with a milder outlook.

MR
MR’s in MEG held at their current WS200 floor and the TC17 index saw a significant improvement of 4.29 points to WS205. UK-Continent MR’s are down significantly this week. The 37kt ARA/US-Atlantic Coastal TC2 hammer in hammer won 48.53 points at WS153.13 ($15,252/day round trip Baltic TCE). 37kt ARA/West Africa (TC19) was also reduced to 48.75 points leaving the index at WS172.81.
The USG MR’s remained stable this week, with the relevant indices being little changed compared to their behavior over the past 18 months. TC14 (38kt US-Gulf/UK-Continent) dropped 10 points to WS150. The 38kt US-Gulf/Brazil TC18 lost 7.5 points to the WS220 and the 38kt US-Gulf/Caribbean TC21 moved from $695,000 to $622,000.

Handymax
In the Mediterranean, Handymaxes lowered its inventory for the second week in a row. The TC6 index moved from WS156.39 to WS120.83. In North-West Europe, TC23 30kt Cross UK-Continent reached 15% to WS163.61.

VLCC
The VLCC market seems to be in a downward spiral now. The 270,000 mt Middle East Gulf voyage to China eased one point to WS45.43, corresponding to a daily TCE voyage of $22,429 based on the Baltic Exchange vessel specification.
In the Atlantic market, the 260,000 mt West Africa/China rate was also down a point at WS51.44 (indicating a round trip with TCE of $29,464/day), while the 270,000 mt US Gulf/China rate decreased for $175,000 to $6,870,000 ($29,597/round trip TCE).

Suezmax
West African Suezmaxes were relatively flat this week with the 130,000 mt Nigeria/UK Continent rate assessed on Thursday at WS76.67 (daily round trip TCE of $24,601). A new route (TD27) from Guyana to the UK Continent on a basis of 130,000mt was tested on Thursday at WS73.5, a decrease of 5 points weekly, to deliver a daily TCE of $22,348 to from Rotterdam.
In the Mediterranean and Black Sea region the 135,000 mt CPC/Med route, is down 8 points on the WS88 (indicating a daily TCE of $24,042 round trip). In the Middle East, the rate of 140,000 mt from the Middle East Gulf to the Mediterranean (via the Suez Canal) is still close to the WS84-85 mark.

Aframax
In the North Sea, the 80,000mt Cross-UK Continental rate is held at WS120 again (translating to a daily TCE voyage of $24,310 Hound Point to Wilhelmshaven basis).

In the Mediterranean market the rate of 80,000mt Cross-Mediterranean lost most of the gains made recently, down 13 points to WS132.44 (Ceyhan base in Lavera showing a daily round trip TCE of $31,125 ).

Across the Atlantic, the market continues to weaken, although not as strongly as it has seen recently. For the 70,000mt East Coast Mexico/US Gulf (TD26) rate fell five points to WS113.75 (daily TCE of $16,638 round trip) while the 70,000mt Covenas/US Gulf (TD9) rate also down five points to WS113.13 (round trip TCE of $16,599 per day). The transatlantic 70,000mt US Gulf/UK Continent (TD25) rate fell four points to WS124.44 (round trip TCE on a Houston/Rotterdam basis of $23,861/day).
Source: Baltic Exchange


#VLCC #Market #Bottom

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