Freight
Market Overview
Freight - Clean Outlook
The primary challenge facing USGC exporters seeking to act on clean product arbitrages is the availability of MR tonnage within the Gulf.
TC14 has continued to surge, with spot FFAs hitting 564 WS in response to global supply losses.
MR vessel supply has been below average counts for weeks while incremental demand has surged to record levels. Pointing towards continued extreme gains in TC14 FFAs.
This is reflected in the FSD model, which forecasts rates for the April 15th–24th load window to bid up to 674 WS over the coming weeks.
Freight: Dirty Outlook
TD25 rates have fallen from their March 26th peak of 763 WS, driven by the dirtying of LR2 vessels trading as Aframaxes, which has added vessel supply and contributed to a decline to 576 WS as of April 9th.
TD22 has similarly declined as tonnage gravitates towards the USGC to secure competitively priced crude grades for Far East refiners. Setting the stage for record export levels from the Americas to Asia.
