Tankers: VLCCs Moving Higher

International Shipping News — 10/08/2026

Clean Products

LR2

The TC1 75kt MEG/Japan index rose 14 points early in the week to WS522, where it has held steady for three days. Westbound rates edged lower, with the TC20 90kt MEG/UK-Continent index slipping from $9.05 million to $8.76 million. In Europe, the TC15 80kt Mediterranean/East index declined by $410,000 to $5.43 million, putting the corresponding round-trip TCE at just over $30,300/day on Baltic description.

LR1

MEG LR1 eastbound rates also firmed early in the week before levelling off. The TC5 55kt MEG/Japan index gained 11 points to WS541. However, the westbound TC8 65kt MEG/UK-Continent index fell by $299,000 to $6.95 million.

MR

The TC17 35kt MEG/East Africa index eased from WS515 to WS500 this week, bringing the Baltic round-trip TCE to $56,300/day. On the UK-Continent route, MR rates also declined, with the TC2 37kt ARA/US-Atlantic Coast index dropping 21 points to WS128 and a round-trip TCE of just $1,300/day.

In the US Gulf, MR freight rates fell sharply. The TC14 38kt US Gulf/UK-Continent index now stands at WS182, down 134 points, yielding a round-trip TCE of $14,000/day — a 64% decline from the prior week. The TC21 38kt US Gulf/Caribbean voyage dropped by $448,000 to $644,000, with a corresponding TCE of $14,300/day on Baltic description. The MR Atlantic Triangulation Basket TCE fell from $46,400/day to $21,500/day.

Handymax

In the Mediterranean, Handymax rates retreated a modest 5 points, leaving the TC6 30kt Cross-Mediterranean index at WS220 with a corresponding TCE of $24,700/day on Baltic description. The TC23 30kt Cross-UK Continent index held steady at approximately WS235.

Crude Oil Tankers

VLCC

The TD3C route (270,000mt Middle East Gulf to China) was assessed 46 points higher than the previous Friday at WS475.56, equating to a daily round-trip TCE of $481,286 for the standard Baltic VLCC. The TD34 (Gulf of Oman/China) was up just 6.5 points week-on-week at WS170, producing a round-trip TCE of over $145,800/day.

In the Atlantic, the TD15 (260,000mt West Africa to China) shed 10 points to just below WS140, giving a round-voyage TCE of approximately $107,000/day. The TD22 US Gulf to China route fell by nearly $878,000 to $18,766,667, yielding a daily round-trip TCE of just under $118,900. The headline strength in Middle East Gulf VLCC earnings, with the TD3C approaching $480,000/day, stands in sharp contrast to the softer Atlantic basin routes, which remained below $120,000/day. This East-West divergence reflects how the two principal crude export regions can move on independent supply and demand dynamics, with tonne-mile demand from Asia supporting East-of-Suez rates even as Atlantic positions softened.

Suezmax

The TD20 (130,000mt Nigeria/UK Continent) tumbled 47 points to WS172.22, translating to a daily round-trip TCE of just under $71,350. The TD27 (130,000mt Guyana/UK Continent) lost roughly 45 points to just under WS174, with a round-trip TCE of close to $73,700/day. The TD33 (145,000mt USG/UKC) dropped 36 points to just below WS162, yielding a round-trip TCE of about $80,700/day.

In the Black Sea, persistent operational issues at the CPC terminal at Novorossiysk continued to push rates higher. The CPC pipeline consortium terminal is the primary export outlet for Kazakh crude to global markets, and disruptions there periodically constrain available Suezmax loading windows, tightening local tonnage supply. The TD6 (135,000mt CPC/Augusta) climbed another 60 points to near WS504, reflecting a daily round-trip TCE of over $377,000.

Aframax

In the North Sea, the TD7 (80,000mt Cross-UK Continent) eased 2 points to just below WS213, showing a daily round-trip TCE of over $108,000 on a Hound Point to Wilhelmshaven basis.

In the Mediterranean, the TD19 (80,000mt Cross-Mediterranean) continued its decline, losing approximately 60 points to the WS242 mark. On a Ceyhan to Lavera basis, the round-trip TCE stood at just under $73,800.

Across the Atlantic, the downward correction persisted as fundamentals failed to support rates. The TD26 (70,000mt East Coast Mexico/US Gulf) lost another 72 points to WS335, producing a round-trip TCE of roughly $95,200. The TD9 (70,000mt Covenas/US Gulf) fell 70 points to below WS328, equating to a round-trip TCE of approximately $89,000. The TD25 transatlantic route (70,000mt US Gulf/UK Continent) plunged over 73 points to about WS307, yielding a Houston/Rotterdam round-trip TCE below $78,200.

On Vancouver exports, the TD28 (80,000mt crude oil Vancouver to China) softened by $41,000 to $3,100,000, giving a round-trip TCE of just under $42,700/day. The TD29 (80,000mt crude oil Vancouver to Pacific Area Lightering point off the USWC) slipped 1.5 points to WS250.

Source: Baltic Exchange

Container Liner Rates

Container liner rates remained at elevated levels in a mixed week overall. The Strait of Hormuz — through which roughly a fifth of global seaborne oil consumption normally transits — appears closer to reopening than it has been in recent times; such a development would gradually reduce fuel costs and likely lead to lower liner rates over the longer term.

The FBX01 cross-Pacific route (China/East Asia – US West Coast) gained $918 from the previous Friday to close the week at $7,012, up $4,395 since the start of 2026. The FBX03 (China/East Asia – US East Coast) rose $125 over the week to $9,144, up $5,387 year-to-date.

The FBX11 (China/East Asia – North Europe) declined by $543 week-on-week to $4,976, though it remains up $1,976 from January. The FBX13 (China/East Asia – Mediterranean) lost $722 from last Friday to $5,794, up $1,164 from the beginning of the year.

Source: Baltic Exchange