China's Foreign Trade Import Tanker Transportation Market Freight Rates Rise

Shanghai Securities News China Securities News (Reporter Gao Zhigang) The "Weekly Report on China's Foreign Trade Import Tanker Transportation Market (2022.06.16)" released by Shanghai Shipping Exchange shows that crude oil freight rates have risen steadily, while refined oil freight rates have continued to rise.

The report pointed out that the U.S. Energy Information Administration (EIA) released data showing that in the week ended June 10, the U.S. commercial crude oil inventories and refined oil inventories excluding strategic reserves increased more than expected, while gasoline inventories fell slightly. U.S. crude exports rose last week, with four-week average supplies of crude products up 2.3 percent from a year earlier. The United Nations recently announced the world economic situation and outlook for mid-2022, pointing out that the global economy, which is still in the recovery period from the epidemic, continues to slow down in the context of rising inflationary pressures, suppressing oil prices.

Recently, the price of Brent crude oil futures has fallen from a high level, and it was reported at US$119.31/barrel on June 16, down 3.46% from June 9. The freight rate of VLCC tankers in the global crude oil transportation market has recovered slightly. The freight rate of Suezmax tankers has grown rapidly, and the freight rate of Aframax tankers has been booming. The freight rate of China's imported VLCC transportation market has risen steadily. On June 16, the China Imported Crude Oil Composite Index (CTFI) released by the Shanghai Shipping Exchange reported 802.38 points, up 0.8% from June 9.

Very Large Tanker (VLCC): The market has been slow to start recently. In the first half of the week, as some shipowners, charterers, and brokers were still participating in the Poseidon Maritime Exhibition in Greece, there was little lag in the information on cargo transactions. Controlling the market, the freight rate hovered at a low level; in the second half of the week, the Atlantic (3.450, -0.02, -0.58%) transaction in the US Gulf increased, especially the Suez ship type in the West African route increased significantly, with the July loading in the Middle East gradually entering the market, injected some vitality into the market, and the freight rate rose steadily. At present, the high fuel oil price makes the WS point almost have no room for the decline, but it is also difficult for the sufficient ship position to make the market improve significantly. On June 16, the freight rate (CT1) of the 270,000-ton class shipping from Rastanura to Ningbo in the Middle East Bay was reported at WS44.93, an increase of 0.7% from June 9, and the 5-day average of CT1 was WS44.86, which was higher than the average of the previous period. Up 1.4%, the average TCE is -16,000 US dollars/day; the freight rate of 260,000-ton class shipping (CT2) from Malonga/Jeno to Ningbo in West Africa was reported at WS46.01, up 1.0%, with an average of WS45.76, and the average TCE - $14,000/day.

Suezmax: The comprehensive level of the transportation market is rapidly increasing. The freight rate of the West Africa to Europe market rose to WS115 (TCE about US$15,000/day); the freight rate of the Black Sea to Mediterranean route rose to WS130 (TCE about US$24,000/day)

Aframax: The Asian route of the transportation market has been steadily rising, the Mediterranean and European routes have continued to recover, and the overall level is thriving. The freight rate of 70,000-ton ships from the Caribbean Sea to the US Gulf remains at WS176 (TCE about US$14,000/day). The trans-Mediterranean freight rate rose sharply to WS204 (TCE about US$41,000/day); the North Sea short-haul freight rate rose to WS160 (TCE about US$24,000/day); the Baltic short-haul freight rate rose to WS174 (TCE about US$33,000/day) ); the freight rate from the Persian Gulf to Singapore remained at WS187 (TCE about US$11,000/day); the freight rate from Southeast Asia to Australia rose slightly to WS166 (TCE about US$14,000/day).

International product tanker (Product): The Asian routes of the transportation market have risen sharply, while the European and American routes have steadily declined, and the overall level has continued to rise. The freight rate of 35,000-ton ships from India to Japan rose sharply to WS476 (TCE about US$47,000/day); the freight rate of 55,000-ton ships from the Persian Gulf to Japan rose sharply to WS378 (TCE about US$57,000/day), The freight rate of 75,000-ton ships has risen sharply to WS301 (TCE is about US$55,000/day); the diesel freight rate of 38,000-ton ships from the US Gulf to Europe is stable at the level of WS178 (TCE is about US$4,000/day); Europe to the United States The freight rate of gasoline for 37,000-ton ships in the east dropped to WS365 (TCE about US$34,000/day); the TCE of the Europe-Europe triangle route was about US$36,000/day.