CPP continuing to dominate and MR cross-Straits rates strengthening to around $330–350k on tighter large-tonnage demand.
Commentary
CPP continuing to dominate and MR cross-Straits rates strengthening to around $330–350k on tighter large-tonnage demand.
OVERVIEW
CPP continuing to dominate and MR cross-Straits rates strengthening to around $330–350k on tighter large-tonnage demand, while chemicals and palms stayed soft. Westbound MR availability tightened slightly on sustained palm and bio movements, lending mild support to rates.
AG-Japan and WCI-Japan might continue to slump further amidst the geopolitical tension to Iran and seasonal lull ahead the pre-Lunar New Year festivities.
MR MARKET OUTLOOK FOR THE NEXT 5-7 DAYS
On the westbound side, palm oil and bio products will continue to dominate, with multiple MR-sized cargoes alongside smaller parcels tightening MR availability. This has supported a gradual firming of MR rates over the course of the week. The northbound market continues to face weak spot demand, with enquiries largely limited to the usual system flows on this route. Owners remain inclined to prioritise short-haul employment or westbound shipments over northbound trades unless freight is sufficiently attractive or repositioning purpose. This sentiment is reinforced by reports showing an 18.3% decline in petrochemical exports from Singapore in December, highlighting ongoing competitiveness challenges against producers in China and other regions. Overall, freight levels remain stable.
SMALL TANKERS OVERVIEW
As Intra-SEA short-haul demand begins to slow, owners are increasingly fixing forward—particularly for mid-February onwards cargoes—while hoping to secure interim short haul employment in the meantime.
Spot activity for chemicals and palms on the northbound route remains soft, with ample tonnage availability and freight under pressure. As Intra-SEA short-haul demand begins to slow, owners are increasingly fixing forward—particularly for mid-February onwards cargoes—while hoping to secure interim short haul employment in the meantime. Despite this, freight levels are still holding around last-done.
On the westbound side, palm oil and bio products continue to dominate, with multiple MR-sized cargoes alongside smaller parcels tightening MR availability. This has supported a gradual firming of MR rates over the course of the week. While overall market activity has softened slightly—reflected in charterers now fixing vessels around three weeks ahead of laycan compared to four weeks earlier in the winter season—prompt tonnage remains difficult to secure. Even when prompt vessels surface, the higher freight premiums often leave charterers with little choice but to extend laycans.
LATEST PLATTS TREND
BUNKER PRICE UPDATES
TREND SUMMARY
Very Low Sulphur Fuel Oil (VLSFO)
Trend: Gradual upward trend across major bunkering hubs during last week. Singapore, Fujairah, Rotterdam, and Houston all recorded higher levels by the end of the week.
7-day change: Global average rising by around USD 9/MT on a 7-day basis.
Interpretation: The improvement reflects recovering refined product sentiment and firmer crude benchmarks, supported by refinery maintenance and stronger marine demand in Asia.
Marine Gas Oil (MGO)
Trend: Increased more sharply than VLSFO, particularly in Singapore and Rotterdam, where 7-day gains exceeded USD 8–10/mt.
7-day change: The global average rose by approximately USD 11/MT over the period, highlighting relative strength in the distillate market compared with fuel oil grades.
Interpretation: The stronger MGO performance suggests tightening middle distillate balances, supported by winter heating demand and constrained refinery output.
Intermediate Fuel Oil (IFO 380 / HSFO)
Trend: moderate gains in Singapore and Fujairah, while Rotterdam remained comparatively softer.
7-day change: Overall, the global HSFO benchmark moved higher on a weekly basis, though gains lagged behind MGO and VLSFO.
Interpretation: HSFO remains supported by scrubber-fitted fleet demand and steady residual fuel consumption, but upside is capped by ample global supply.
News & Commentaries
CPP continuing to dominate and MR cross-Straits rates strengthening to around $330–350k on tighter large-tonnage demand.
CPP continuing to dominate and MR cross-Straits rates strengthening to around $330–350k on tighter large-tonnage demand, while chemicals and palms stayed soft. Westbound MR availability tightened slightly on sustained palm and bio movements, lending mild support to rates.
AG-Japan and WCI-Japan might continue to slump further amidst the geopolitical tension to Iran and seasonal lull ahead the pre-Lunar New Year festivities.
On the westbound side, palm oil and bio products will continue to dominate, with multiple MR-sized cargoes alongside smaller parcels tightening MR availability. This has supported a gradual firming of MR rates over the course of the week. The northbound market continues to face weak spot demand, with enquiries largely limited to the usual system flows on this route. Owners remain inclined to prioritise short-haul employment or westbound shipments over northbound trades unless freight is sufficiently attractive or repositioning purpose. This sentiment is reinforced by reports showing an 18.3% decline in petrochemical exports from Singapore in December, highlighting ongoing competitiveness challenges against producers in China and other regions. Overall, freight levels remain stable.
As Intra-SEA short-haul demand begins to slow, owners are increasingly fixing forward—particularly for mid-February onwards cargoes—while hoping to secure interim short haul employment in the meantime.
Spot activity for chemicals and palms on the northbound route remains soft, with ample tonnage availability and freight under pressure. As Intra-SEA short-haul demand begins to slow, owners are increasingly fixing forward—particularly for mid-February onwards cargoes—while hoping to secure interim short haul employment in the meantime. Despite this, freight levels are still holding around last-done.
On the westbound side, palm oil and bio products continue to dominate, with multiple MR-sized cargoes alongside smaller parcels tightening MR availability. This has supported a gradual firming of MR rates over the course of the week. While overall market activity has softened slightly—reflected in charterers now fixing vessels around three weeks ahead of laycan compared to four weeks earlier in the winter season—prompt tonnage remains difficult to secure. Even when prompt vessels surface, the higher freight premiums often leave charterers with little choice but to extend laycans.
TREND SUMMARY