Northeast Asia clean MR rates rose, as higher exports from China led to a salvo of fixtures and cargoes.
Lumpsum freight rates for 35,000t shipments from South Korea to Singapore and to the US west coast (USWC) rose by about 56pc and 21pc to $1.4mn and $3.15mn respectively on 14 November, from $900,000 and $2.6mn on 3 November. Worldscale (WS) rates for the South Korea-Australia route rose by about 13pc to WS400 on 14 November from WS355 on 3 November.
Argus assessed time charter equivalent (TCE) rates from South Korea to Singapore, to the USWC and to Australia up by about 90pc, 33.3pc and 21.8pc to $55,214/d, $52,379/d and $42,533/d respectively on 14 November, from $29,071/d, $39,300/d and $34,910/d on 3 November.
TCE rates moved up by a larger margin because of lower bunker prices. Very-low sulphur fuel oil (VLSFO) prices in South Korea fell to $694/t on 14 November from $730/t on 3 November.
Chinese exports rise on higher margins
Chinese exports are on course to rise strongly in November to 1.5mn b/d, as export margins have improved considerably from October, Argus' surveys indicate. Domestic diesel demand is likely to weaken as temperatures drop in north China, impeding construction activity.
Chinese domestic diesel demand was relatively low because of the extension of the country's zero-Covid restrictions, with Guangzhou implementing further lockdown measures to curb the spread of the virus.
Spot cargo volumes in the northeast Asia region rose to a daily average of about nine cargoes over 7-10 November from about two per day over the same period last week.
Spot MR supplies over a 10 day-period fell to about 11 vessels on 8 November, compared to about 30 vessels a week earlier, a shipbroker said.
