USGC-NWE clean tankers freight rates plunge w70 in two weeks

US Gulf Coast-Northwest Europe clean tankers freight rates fell a further 5 points to be assessed at Worldscale 85, basis 38,000 mt, meaning they have now lost 70 points since touching a 2013 high of w155 on October 2, Platts data shows.

"The market went up too quickly... and a lot of cargoes were taken out by long-range vessels [instead of medium-range tankers]," said a shipbroker Friday.

"Rates spiked due to an increase in activity and a few prompt vessels open in the USGC," said another shipbroker.

"Volume remains steady in the USGC (reduced slightly since the spike) but ballasters are now coming in so tonnage no longer looks tight therefore charterers can once again start to put pressure on these rates," he added.

Thursday, the Singapore Star was heard on subjects at w85 to load a 38,000 mt cargo around October 22 from the USGC to the UKC, while the Pacific Quartz was reported on subjects at the same rate for the same route and the same cargo size but loading very promptly.

"US Gulf rates remain under pressure even with the steady volume seen," said a US-based shipbroker. "Existing open cargoes are seeing up to a dozen offers which is testing range lows," he added.
Source: Platts