Tanker Market: VLCCs on a Rampage

The tanker market experienced significant movement this week, with VLCCs leading the charge. The TC1 75kt MEG/Japan index climbed 25 points to WS82, while the TC20 90kt MEG/UK-Continent index dropped slightly from $16.5 million to $16.35 million. The TC15 80kt Mediterranean/East index saw a modest increase of over a million dollars to $7.2 million.

The TC5 55kt MEG/Japan index rose by 21.5 points to WS842. Westward voyages on TC8 and TC17 also contributed to the market's upward trajectory, with indices increasing by $457,000 and $15 points, respectively. In the US Gulf, MR freight levels moderately increased, with TC14 38kt US Gulf/UK-Continent reaching WS232, up 15 points from its starting point.

The Caribbean voyage on TC21, 38kt US-Gulf/Caribbean, followed the same trend, sitting at $682,000 with a TCE of $14,200/day. The Baltic TCE rose from -$6,500 to -$477/day, while the US Gulf market saw modest gains. The Caribbean and US Gulf routes also experienced increases, with rates climbing and daily round-trip TCEs rising accordingly.

The Atlantic market saw further gains, with rates for the West Africa to China route (TD15) climbing 108 points to WS531.25, generating a TCE of $524,575/day. In the Black Sea, the TD6 route strengthened to just over WS500, with a daily round-trip TCE of $366,750. In the North Sea, the TD7 route gained 42.5 points to WS301.67, showing a daily round-trip TCE of $186,000.

Despite earlier loosening by owners, the Atlantic market tightened again by Thursday, with the 70,000 mt East Coast Mexico/US Gulf route dropping to WS440 and then rising to WS447.5, resulting in a TCE of $128,100.