Atlantic Tanker Earnings Fall Faster Than Gulf Earnings

Both TD3C (Middle East Gulf–China) and TD22 (US Gulf–China) reached their October earnings peaks on 8 October, although the subsequent correction has been considerably sharper on the Atlantic route. By 6 November, TD22 earnings had fallen 34.9% from their October high, compared with a 9.0% decline on TD3C. The sharper fall in Atlantic earnings pushed the TD3C/TD22 ratio to 3.10 at the end of the week, its highest level since 18 September and above its 12-month average of 2.77.

Freight: Atlantic Crude Routes Lead the Decline The ten largest percentage declines in the dirty basket were all on routes loading West of Suez, as classified in Chart 2 and the table below. Suezmax West Africa–UK Continent (TD20) fell 46.6%, Guyana–ARA (TD27) 52.6%, and Black Sea–Mediterranean (TD6) 37.2%, while MEG–Mediterranean (TD23) fell 8.4% and remained 3.2 times TD20. Among Aframaxes, Cross-Mediterranean (TD19) fell 69.8% and US Gulf–ARA (TD25) fell 60.8%, against 3.8% on Kuwait–Singapore (TD8). All 16 routes remain above their year-earlier and three-month reference levels.

Supply: Westbound Ballasters Rise as the Fleet Stays East Signal Maritime recorded 49 active westbound VLCC ballasters on 8 November, compared with 45 a week earlier. Of these, 43 originated in the Far East. Brazil was the leading destination with 18 vessels, followed by South Africa with 10 and the African Atlantic Coast with eight. The count remains below the late-October peak of 52, and monthly East-to-West ballast movements fell from 73 in September to 50 in October.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →