In the ever-shifting landscape of the maritime industry, the VLCC (Very Large Crude Carrier) market has seen a marginal decline this week, reflecting a trend favoring shorter voyages. This development comes against a backdrop of various shifts and adjustments in other tanker segments, creating a multifaceted market scenario.
VLCC Market: Shorter Voyages Take Center Stage
Owners and operators in the Middle East have demonstrated a preference for shorter voyages, possibly influenced by prevailing market conditions and tonnage accumulation. As a result, rates have faced pressure, with the rate for a 270,000 mt Middle East Gulf to China voyage slipping by one point to WS47.29. This translates to a daily round-trip TCE (Time Charter Equivalent) of $19,431, marking a $2,300 decrease from the previous week. Meanwhile, the 280,000 mt Middle East Gulf to US Gulf rate has remained relatively stable at around WS30.
VLCC Atlantic Routes: Mixed Performance
The Atlantic market for VLCCs has witnessed a mixed performance. The rate for the 260,000 mt West Africa to China route held steady at WS53, reflecting a round-voyage TCE of $28,200 per day. Conversely, the rate for the 270,000 mt US Gulf to China voyage experienced a modest reduction of $27,778, resulting in a rate of $8,250,000 or approximately $30,400 per day for a round trip.
Suezmax and Aframax Segments Display Varied Trends
In the Suezmax segment, West Africa has seen rates stabilize after a period of decline. Rates for the 130,000 mt Nigeria to Rotterdam route have plateaued at the WS65 level, amounting to a daily round-trip TCE of $10,975. Notably, the Mediterranean and Black Sea region has witnessed growing tonnage lists and increased demand for available cargoes. Rates for the 135,000 mt CPC to Mediterranean route dipped slightly, closing the week just below WS75, translating to a daily TCE of around $9,500 for a round trip.
Across the Aframax sector, the North Sea market displayed modest gains, with rates for the 80,000 mt Hound Point to Wilhelmshaven route edging up by a single point to WS97.14. Meanwhile, in the Mediterranean, improved owner collaboration drove rates upwards. The rate for the 80,000 mt Ceyhan to Lavera route saw a notable increase of 9.5 points to WS98, equivalent to a daily round-trip TCE of $10,700.
In the Stateside Aframax market, a stabilization trend emerged for shorter voyages. Rates for the 70,000 mt East Coast Mexico to US Gulf route witnessed a modest rise of 1.5 points to WS105, aligning with last Friday’s value and indicating a TCE of $7,631 per day for a round trip. The rate for the 70,000 mt Covenas to US Gulf route remained stable at WS97.5, representing a round-trip TCE of $7,420 per day, slightly lower than the previous week. On the trans-Atlantic route of 70,000 mt US Gulf to Rotterdam, rates contracted by five points to WS114.06, yielding a round trip TCE of $16,737 per day.
As the maritime industry continues its dynamic trajectory, these shifts underscore the intricate interplay of factors influencing tanker rates across different segments.
Source: Baltic Exchange
