Long Range 1 tanker freight rates from the UK Continent to West Africa have dropped to the lowest in over three months, following a crash in Medium Range tanker rates.
The Cape Tampa was heard on subjects Thursday to Shell for a 60,000 mt cargo loading in Amsterdam-Rotterdam-Antwerp on March 17 for a voyage to West Africa at w97.5.
The UKC-WAF route, basis 60,000 mt, was assessed at Worldscale 97.5, down w12.5 from Wednesday, a new low for 2018 and the first time below w100 since the end of October — albeit on a higher flat rate than in 2017.
The rate was equivalent to $12.39/mt, the lowest since November 28.
“Well, w97.5 is still on subs, and it is the MRs fault really,” one shipbroker said. “There is no demand, and the LR2s are taking all the East hauls as they are priced the same.”
The UKC-US Atlantic Coast and US Gulf Coast routes, also basis 60,000 mt, have dropped in line with the West Africa route as they are normally freighted on the same rate.
MR tankers in Europe have seen rates drop sharply this week, weighed down by severe overtonnage. The UKC-WAF route for 37,000 mt cargoes was assessed at w142.5 Thursday, equivalent to $18.11/mt and down w27.5 over the past week.