Europe to US, WAF medium-range tanker freight rates rally on tighter tonnage
The medium-range tanker market rallied at the end of the week in Europe on tighter tonnage and a steady flow of new inquiries, rendering the trans-Atlantic front-haul route -- heading to the US -- once again more expensive than the back-haul route, shipping sources said Friday.
UK Continent-West Africa freight rates saw the biggest day-on-day move in the West of Suez clean tanker market Thursday to be assessed Worldscale 145, basis 37,000 mt, up w10 and a five-week high.
The last time UKC-WAF rates were assessed at w145 was on May 29, 2013, Platts data shows.On Thursday, fixtures for this route and this size of cargo were reported at w142.5, w145 and w150."The market for medium-range tankers has been firming up quite nicely and in the short term I think it will continue the same upwards trend," said a shipbroker.
"If the level of inquiries persists, then I believe rates could go up more," added another shipping source.UKC-US Atlantic Coast freight rates meanwhile rose 7.5 points Thursday to w130, basis 37,000 mt.
The Maetiga was reported on subs to load 37,000 mt of clean products around July 18 from UKC, at w130 if bound for USAC or at w150 if bound for WAF.Later in the day, the Mount Adamello was heard on subs at w132.5 to carry a 37,000 mt gasoline cargo on a trans-Atlantic voyage from Fawley on the south coast of England.
Only a week ago, UKC-WAF freight rates were assessed at w120 while UKC-TA rates were assessed at w110, both basis 37,000 mt, according to Platts data.Meanwhile, the MR market for the back-haul route softened, with at least three fixtures reported at w125 to load 38,000 mt of clean products from US Gulf Coast to UKC.According to a shipowner, there were plenty of cargoes before the recent US holiday and it was very tight on tonnage, but at the beginning of the week there were some ships on prompt positions, so cargoes managed to pick them up at slightly lower rates.
"The US market continues to see healthy activity but there are still a handful of prompt ships in the US Gulf and tonnage is readily available for third decade dates as several ballasters from the USAC and WAF are heading to the US Gulf," said a US-based shipbroker.USGC-UKC freight rates shed w5 to w125 Thursday, basis 38,000 mt.
The medium-range tanker market rallied at the end of the week in Europe on tighter tonnage and a steady flow of new inquiries, rendering the trans-Atlantic front-haul route -- heading to the US -- once again more expensive than the back-haul route, shipping sources said Friday.
UK Continent-West Africa freight rates saw the biggest day-on-day move in the West of Suez clean tanker market Thursday to be assessed Worldscale 145, basis 37,000 mt, up w10 and a five-week high.
The last time UKC-WAF rates were assessed at w145 was on May 29, 2013, Platts data shows.On Thursday, fixtures for this route and this size of cargo were reported at w142.5, w145 and w150."The market for medium-range tankers has been firming up quite nicely and in the short term I think it will continue the same upwards trend," said a shipbroker.
"If the level of inquiries persists, then I believe rates could go up more," added another shipping source.UKC-US Atlantic Coast freight rates meanwhile rose 7.5 points Thursday to w130, basis 37,000 mt.
The Maetiga was reported on subs to load 37,000 mt of clean products around July 18 from UKC, at w130 if bound for USAC or at w150 if bound for WAF.Later in the day, the Mount Adamello was heard on subs at w132.5 to carry a 37,000 mt gasoline cargo on a trans-Atlantic voyage from Fawley on the south coast of England.
Only a week ago, UKC-WAF freight rates were assessed at w120 while UKC-TA rates were assessed at w110, both basis 37,000 mt, according to Platts data.Meanwhile, the MR market for the back-haul route softened, with at least three fixtures reported at w125 to load 38,000 mt of clean products from US Gulf Coast to UKC.According to a shipowner, there were plenty of cargoes before the recent US holiday and it was very tight on tonnage, but at the beginning of the week there were some ships on prompt positions, so cargoes managed to pick them up at slightly lower rates.
"The US market continues to see healthy activity but there are still a handful of prompt ships in the US Gulf and tonnage is readily available for third decade dates as several ballasters from the USAC and WAF are heading to the US Gulf," said a US-based shipbroker.USGC-UKC freight rates shed w5 to w125 Thursday, basis 38,000 mt.