Atlantic MRs have taken a nosedive, losing more than $30,000 per day over the last week.
The Baltic Exchange Atlantic basin time charter equivalent assessment fell $6,523 to $38,060 per day on Friday. This capped a week that started at $68,692 per day, bringing a decline of nearly 45%.
“The USG MR market abruptly stopped and took a major correction down this week,” the Baltic Exchange said in its weekly note.
“[The US Gulf to Continental Europe route] has lost about 150 points to end up at WS210 and [US Gulf to Brazil] has similarly shed WS150 to WS312.5. Due to the current bunker prices amongst other factors, this has taken the [US Gulf to Continental Europe] round trip TCE to less than half of what it was last week.”
On a TCE basis, the US Gulf to Continental Europe route was assessed at $10,467 per day on Friday, while an MR on a US Gulf to Brazil voyage was estimated to earn $29,108 per day.
Shipbroker Howe Robinson had the US Gulf to Continential Europe route even lower, falling from $39,609 per day on 5 August to just $8,467 per day.
Meanwhile, in Europe, tonnage lists swelled helping to drive down the cross-Atlantic Continental Europe to US east coast route.
The Baltic Exchange assessed the route at $32,814 per day on Friday, while Howe Robinson said it fell to $37,636 per day.
Howe Robinson reported on Thursday some cargoes in the region even went on handysize tankers, creating more issues for MRs in the region.
The broker called Friday “a day to forget”.
“With only a single stem outstanding and a very healthy tonnage list, owners look set to start next week still on the back foot,” it said.
Across the globe, MRs in the Pacific basin saw declines, as well, but not nearly as steep as those seen in the Atlantic.
There, TCE rates held steady at $37,056 per day.
Last week, Pacific MRs were earning $43,854 per day.
Overall, the Baltic Clean Tanker Index slipped 12 points on Friday to 1,423, but gained 19 points over the course of the week.
