NWE-USGC LR clean tanker rates hit fresh 2014 lows on ample tonnage

Long range clean tanker rates on the Northwest Europe to US Gulf Coast route, basis 60,000 mt, hit a fresh low so far in 2014 Wednesday because of ample tonnage, shipping sources said Thursday.

According to Platts data, freight rates on the NWE-USGC voyage, basis 60,000 mt, fell $1.15 over the day to be assessed at $20.13/mt Wednesday, which was the lowest since November 5, 2013, when the rate on the route was $19.31/mt.

Shipping sources said, typically, freight on the NWE-West Africa route, basis 60,000 mt, moves in tandem with the rates on the NWE-USGC route.

Platts data shows, freight rates on the NWE-WAF voyage, basis 60,000 mt, fell $0.91 to $15.96/mt, a level last hit on March 14.

Shipping sources put the rate on the NWE-USGC route within a range of Worldscale 87.50-90.00 ($20.13-20.70/mt) on Thursday morning.

“There are plenty of ships available in NWE…tankers are now ballasting to the Persian Gulf with not much activity seen in NWE over the past few weeks,” a Mediterranean shipbroker said.

“It’s a situation where shipowners have one cargo against five ships. In this scenario, it’s better to spot a prompt cargo rather than leave it,” he added.
Source: Platts