Spot rates for MR product tankers continued their upward momentum on Wednesday as the market in north-west Europe tightened.
In a market already at a near-two year high because of rising refinery runs, the Baltic Exchange’s assessment of spot time-charter equivalent for the triangular trade in the Atlantic jumped to $24,768 per day, a one-day gain of 11%.
That’s more than 30% higher than rates in Atlantic this time last week and it marks the highest level achieved since May 2020.
The day’s surge was driven by increasing enquiries for cargo stems for prompt loading dates dropping into a north-west European market, where the MR tanker tonnage list was tightening, according to UK shipbroker Howe Robinson.
One ship was chartered on subjects at WorldScale 195.5 for a run from the Amsterdam-Rotterdam-Antwerpregion to West Africa, up from WS 195 a day earlier.
Howe Robinson assessed the charter rate on the front-haul TC2 route, for MRs travelling from Rotterdam to New York, at WS 182.5 on Wednesday, up from WS 180 a day earlier, as sentiment in the market firmed.
But in the Pacific market, rates rose more modestly.
The Baltic Exchange’s assessment for spot earnings in the basin jumped to $23,986 on Wednesday, a 1.9% one day gain but still a nearly two-year high.
LR2s and LR1s dip
Larger ships saw their spot rates decline, pushing the Baltic Clean Tanker Index downward by 13 points to 1,019.
But TCE earnings still improved on key routes.
LR1 product tankers on the TC5 route dipped four points to just under WS 198.
But TCE rates rose to $22,157 per day on Wednesday, up 5.8% from Tuesday, according to the Baltic Exchange.
Howe Robinson pointed to limited fresh enquiry and growing open tonnage in recent days, and a list of 26 available ships under 15 years old and another 12 open that are older.
Spot earnings for larger LR2s on the benchmark TC1 also gained ground on Wednesday, jumping to $27,196 per day on a TCE basis.
That was up from $25,540 a day earlier.
But on a WorldScale basis, spot rates on the route shrank back by about four points to WS 182.
