Asia-Pacific MR Market Sees Initial Gains Before Midweek Retreat
The last week began with stronger sentiment in Southeast Asia, as an uptick in demand and constrained tonnage availability lent support to freight levels. Despite the bullish tone in the south, Northeast Asia opened on a softer footing compared to the prior week, with rates for southbound moves from Korea towards Singapore assessed at $630,000 and the Australia-bound trade at WS 205. The run from Singapore up to Japan firmed, climbing by WS 7.5 to reach WS 185, while Southeast Asia-to-Australia edged up to WS 205. Among reported fixtures, Ampol secured the MT Forever Brilliancy ex-Korea to Australia at WS 205.
On Tuesday, route-by-route dynamics began to diverge. Freight levels for shipments moving southbound out of South Korea remained unchanged at $630,000, though activity toward the Australian market softened slightly, with values slipping to WS 202.5. Eastbound voyages from Singapore toward Japan gained traction, climbing to WS 190. At the same time, demand for liftings ex-Southeast Asia with Australian discharge surged, pushing levels up by WS 12.5 to WS 217.5. While southern Asia continued to see active inquiry, the northern market faced growing tonnage lists, hinting at possible rate erosion ahead.
Midweek, the momentum reversed as supply-side pressure took its toll on several lanes. South Korea to Singapore dipped by $15,000 to $615,000, while the Australia route from the same origin slid to WS 200. Vitol was reported to have fixed the Forever Conviviality out of Yosu for early April loading at this level.
Southeast Asia-origin cargoes heading to the Australian seaboard weakened by WS 7.5, down to WS 210. Slowing trade flows, exacerbated by a combination of planned and unexpected refinery maintenance across parts of Asia, continued to weigh on sentiment, especially as available tonnage outpaced demand.
By The end of the period, the market steadied, finding a brief equilibrium. South Korea to Singapore held at $615,000, with the Australia leg maintaining WS 200. From Southeast Asia, trades destined for Australian ports stayed flat at WS 210, as active chartering helped contain further losses despite ongoing tonnage pressure.
