Medium Range clean tanker rates in the Mediterranean region were at premium to Northwest Europe because there was still demand from the Red Sea for the end of March, and the tonnage for the MR tankers in the Med was tight, shipping sources said this week.

MR rates in the NWE fell Tuesday, however the MR rates in the Mediterranean remained steady, Platts data shows.

The NWE to the US Atlantic Coast route, basis 37,0000 mt, fell w10 to be assessed at w125 Tuesday, the lowest since February 2 when the rate on the route was at w117.50, according to Platts data.

However, freight rates on the Med to USAC route, basis 33,000 mt, remained steady day-on-day at w151.25 Tuesday.

Typically there is no spread between MR rates between the NWE and Med, however there was not enough tonnage in the Med putting upward pressure on MR freight rates, shipping sources said.

"There haven't been many MRs coming to the Mediterranean region carrying ultra low sulfur diesel from the Persian Gulf, and US Gulf Coast, which is keeping the tonnage tight," a shipbroker said.

"Generally, there is no premium between MR rates between NWE and Med, however there is a premium in the Med as there are not enough MRs in the region," He added.

The source said, there is also demand from the Aqaba, Jordan, which is keeping the position list tight for the end of March.

Another shipping source said, there were a couple of cargoes to be covered from the East Med and Red Sea region on MR tankers.

MR rates on the Med-West Africa route, basis 37,000 mt, were at a w12.50 premium over UKC-WAF routes Tuesday, Platts data showed.

While, MR rate on the Med-WAF route, basis 37,000 mt, was assessed at w157.50, while NWE-WAF, basis 37,000 mt was at w145, Tuesday, according to Platts data.

Shipping sources sources on Wednesday indicated freight rates on NWE-WAF route at w145, and but the freight rate on the Med-WAF route, basis 37,000 mt, could have the potential to edge down Wednesday.

"Freight rate on the Med-WAF route could edge down lower within a range of w145-150, however the route needs testing," a shipbroker said.