Spot market rates for suezmax crude tankers shot upward by nearly 81% in just four days as a tight list of available tonnage met strong sentiment by owners.
The Baltic Exchange’s average of time-charter equivalent (TCE) earnings jumped from just under $24,600 per day on Monday to a nearly three-month high of about $44,400 per day at the close of the week.
The figure represents the highest level since for the segment since 26 April, a time when rates in the sector were falling from a spike fuelled by Russia’s invasion of Ukraine and the sanctions actions that followed, shaking up trading patterns.
The average TCE earnings surge nearly $12,000 per day on Friday alone, even though brokers said the day’s chartering activity appeared to be happening in the dark.
“On the surface, activity has appeared lighter today in the suezmax market,” said UK broking house Howe Robinson.
“However, with rates firming this week, activity has gone underground, and tonnage lists remain tight across the board. Subsequently, rates continue to firm today with owners bullish as we head into the weekend.”
On the benchmark TD6 route from the Black Sea to the Mediterranean, rates surged from WorldScale (WS) 125 on Monday to about WS 188 on Friday, according to Howe Robinson.
For a non-eco tanker, the outfit estimated that the rate translates to a more than doubling of TCE earnings to from just $31,668 to $78,540 per day over the four-day period.
On the TD20 route from West Africa to Europe, the rates gained from WS 115 to WS 145 over the same period, the broker’s data shows.
Spot rates for larger VLCCs also rose to their highest level since 26 April, though they remained in loss-making territory.
The Baltic Exchange’s assessment of TCE earnings reached around -$10,700 per day, a 26% jump in four days.
The improvement came as the benchmark rate for a VLCC voyage from the Middle East to China moved from WS 57.5 on Monday to WS 58.5 on Friday, according to Howe Robinson.
“The MEG [Middle East Gulf] market this week ended quietly with little fresh reported fixed,” the broker said. “Focus will move next week to August stems.”
There was action outside of the Middle East, though. IndianOil picked up Adnoc Logistics & Services’ 300,000-dwt Das (built 2019) for a voyage from West Africa to the east coast of India, according to Tankers International.
The round-voyage TCE of $32,000 per day is up from $30,800 per day for an equivalent trip on a somewhat older vessel on Monday.
