MR tanker rates see a sudden drop

MR tanker rates see a sudden drop

Rates for clean product tankers have been trending downwards since for some weeks, but today MR tanker spot rates fell almost $1,000 today compared to Thursday’s level, according to Baltic Exchange assessments.

The Continent to US Atlantic Coast route (TC2_37) for 37,000-dwt MR tankers was today assessed at a timecharter equivalent (TCE) rate of $2,374 per day, some $930 below Thursday.

Coming back across the Atlantic, the Baltic’s US Gulf to Continent (TC14) benchmark run was assessed at a loss-making TCE rate of -$593 per day, a drop of $658.

The losses led to the Baltic’s MR Atlantic triangulation, which is based on both TCE rates for both TC2 and TC14, being assessed some $991 lower at $4,097 per day today.

MR tanker earnings are down by 44% year to date, compared with the same period last year, according to a recent report from shipbroking firm Charles R Weber. In contrast, MR earnings showed a 70% annual gain during 2015.

“Despite the extent of downside, our view remains that current market headwinds have resulted from non‐structural influences created by overbuilt product inventories following the collapse of crude oil prices in 2H14 and the immense surplus refining activity, which accompanied corresponding improvements to global refining margins,” the shipbroker said in the report.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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