Shipbroking

Uncertainty Lingers in Northwest European Tanker Markets

08/09/2024

The outlook remains uncertain across all clean product tanker sizes in the UK Continent and Baltic markets.

MR tankers were unable to build on this week’s brief momentum on the main UK Continent to US routes. Limited European domestic consumption is pushing gasoline prices lower, potentially reopening a competitive arbitrage for overseas markets soon.

However, without an increase in export volumes within or out of Europe, MR rates dropped by 10 points in the last session, closing the week at WS 125.

The cross UK Continent Handy tanker index remained stagnant at WS 155. A potential lift from the Mediterranean market was limited by its own flat conditions and the modest flow of fresh shipment requests. With idle tonnage accumulating in both regions, hopes for improvement are likely to fade quickly.

In the barging sector, no major changes were noted, though rising water levels on the upper Rhine are allowing for larger cargoes to move upriver, easing prices per metric ton. The ARA hub saw a slight increase in barge demand, which may drive up prices soon.

Smaller tonnage in Northwest Europe showed little improvement over the week, but there are signs of progress. More cargoes have been spotted recently, spanning oil products, chemicals, and bio-materials. This has reduced the availability of prompt tonnage across small chemical and intermediate sizes, though freight rates have remained flat. Unless specific demand arises, helped by falling bunker prices, last-minute shipments can still be fixed at discounted rates.