Clean freight rates for medium range voyages loading in the UK Continent and Mediterranean regions and discharging on the US Atlantic have surged since the last decade of October, with market participants pointing to rising inquiry levels and a shortening tonnage list.
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Register NowPlatts, part of S&P Global Commodity Insights, assessed wet freight on the 37,000 mt UKC-US Atlantic Coast route at w205 on Nov. 6, up w10 from the previous day and up w65 from the three-month low of w140 it hit on Oct. 19
Platts also assessed freight on the 37,000 mt Med-USAC route at w205 on Nov. 6, up w22.5 from the previous day and w60 above the Oct. 19 rate of w145 (also a three-month low).
In the last-done fixture, it was reported at midday Nov. 6 that P66 had placed the Maria on subjects for a 37,000 mt UNL cargo loading in Immingham and discharging in the US, off a Nov. 9-10 laycan, at w205.
Market sources have attributed the surge in the MR trans-Atlantic market to strong inquiry levels in the UK Continent, which have pushed up UKC-transatlantic rates and pulled vessels away from the Mediterranean, causing Med-transatlantic rates to rise in turn.
"Things will only be pushing up with each fixture -- if we see a few more cargoes coming out then UKC-TA rates will jump up by another 5-10 points," a UK-based shipbroker said.
Sources also pointed to a tightening tonnage pool across both regions, in part due to delays caused by bad weather conditions.
"It's very tight on tonnage, with no natural ballasters," a Europe-based shipowner said.
LR sentiment remains flat
In contrast to the firming MR market, rates for the long-range segment have failed to replicate the gains made during the third quarter, with sources pointing to limited inquiry levels.
Platts assessed freight on the 60,000 mt UKC-WAF route at w172.5 on Nov. 6 and freight on the 60,000 mt Med-Japan route at lump sum $2.875 million.
"Things are a bit more questionable at the moment because of a slow AG market and the Bahri event, but there are a few cargoes on the way, which should be enough to keep sentiment steady," a UK-based LR owner said.
Product volumes have been lower in the Asian market due to refinery maintenance works in Asia and Saudi Arabia, but tonnage levels are also being reduced by LR2 vessels joining the Aframax fleet to take advantage of booming dirty tanker rates, a Europe-based LR broker said.