The cost of sending Medium Range tankers from the UK Continent to the US Atlantic Coast has risen to its highest level in over three months due to a sharp rise in cargo flows at the start of the week, according to Platts data and market sources.
The UKC-USAC route, basis 37,000 mt, was assessed Worldscale 17.5 higher at w127.5. This equates to $20.85/mt, the highest level since a $21.26/mt assessent on August 7.
On the fixture front, Exxon was heard to have put the Phyxis Theta on subjects at this level for a UKC-TransAtlantic voyage loading November 15.
While the loading dates on this fixture were a little on the prompt side, sources said the high number of cargoes still in the market meant the w127.5 level would be repeatable for other owners.
â€œThe owners will argue that w127.5 is last done and that is the market now. There is a lot of MR inquiry out there,â€ said a shipbroker.
There were still several cargoes to be covered in the UKC, Baltic and Mediterranean on Tuesday morning, and sources said freight rates in the regions were likely to rise further if this level of inquiry is sustained in the coming days.
Among these, Exxon had a 37,000 mt Fawley-TransAtlantic requirement loading November 18-19, Neste worked a 37,000 mt Porvoo-TransAtlantic cargo on November 17-20 and ST Shipping had a 40,000 mt Primorsk-UKC stem on November 20-21.