NE Asian clean MR freight rates fall from record highs

NE Asian clean MR freight rates fall from record highs

Singapore, 24 May (Argus) — Medium Range (MR) clean tanker rates from northeast Asia have been on a downward trend since hitting a record high on 6 May because of weaker demand and a rise in tonnage supply.

Lump-sum freight rates for 35,000t shipments from South Korea to Singapore and to the US west coast (USWC) fell by 44pc and 31pc to $700,000 and $2mn respectively on 23 May, from $1.25mn and $2.9mn on 6 May. The Worldscale rate for a similar-size shipment from South Korea to Australia fell by 28.75pc from W400 on 6 May to WS285 on 23 May.

Freight rates were unable to stay at record highs because the factors that led to their surge in early May did not persist, a shipbroker said. Several charterers emerged with requirements at the same time, with spot demand elevated by regional holidays during the period. Vessel supplies were also thin as some shipowners had ballasted their ships to the US Gulf coast when rates were also high in April.

Daily spot chartering activity has fallen by about 50pc in the week of 23 May compared with the week of 25 April, Argus data show. And at least 21 vessels are expected to