TD3C
TD3C; the Baltic Exchange benchmark for a Very Large Crude Carrier carrying 270,000 tonnes of crude from the Middle East Gulf to China, the primary reference for VLCC freight costs on the main export corridor from the Persian Gulf.
Last refreshed: 18 May 2026 · Appears in 1 active topic
At WS458 and $462k TCE per day, is VLCC freight pricing a structural shift or a Hormuz spike?
Timeline for TD3C
Brent-Dubai EFS over $6, TD3C at WS458
European Oil Markets- What is the TD3C tanker route?
- TD3C is the Baltic Exchange's benchmark route for 270,000-tonne VLCCs running from Ras Tanura in Saudi Arabia to Ningbo in China. It is quoted in Worldscale points and is the global standard for pricing supertanker spot freight.
- Why are VLCC freight rates so high in May 2026?
- TD3C hit WS458.75 on 11 May 2026 (TCE $462,102/day), driven by Hormuz transit disruption diverting vessels to longer routes, a Brent-Dubai EFS above $6/BBL incentivising Atlantic-to-Asia crude flows, and the Baltic Dirty Tanker Index reaching an all-time high.Source: Lowdown european-oil-markets
- How is TD3C converted from Worldscale to dollars?
- TD3C Worldscale points are converted to a Time Charter Equivalent (TCE) in dollars per day, reflecting the net daily earnings of the vessel after voyage costs. At WS458.75 on 11 May 2026, the TCE was $462,102/day.Source: Lowdown european-oil-markets
Background
TD3C is the Baltic Exchange's benchmark dirty tanker route for very large crude carriers (VLCCs): a 270,000 tonne voyage from Ras Tanura (Saudi Arabia, Middle East Gulf) to Ningbo (China), quoted in Worldscale points. It is the global standard reference for VLCC spot freight and the primary instrument used by crude traders, refiners, and shipowners to price, hedge, and assess supertanker economics on the world's most trafficked crude trade lane.
Rates on TD3C are converted from Worldscale points to a time-charter equivalent (TCE) in dollars per day to make them comparable across vessel sizes and voyage durations. On 11 May 2026, TD3C was assessed at WS458.75, equivalent to a daily round-trip TCE of $462,102 — up roughly 50 Worldscale points week-on-week. The rate reflected a confluence of factors: a Brent-Dubai EFS above $6/BBL incentivising Atlantic-to-Asia crude arbitrage flows, Hormuz transit uncertainty diverting vessels to longer routes, and the Baltic Dirty Tanker Index reaching an all-time high above 1,900 points simultaneously.
TD3C is structurally important for European oil markets because VLCC freight economics affect where Middle Eastern sour crude flows. When TD3C is elevated, Middle Eastern crude costs more to deliver to Asia, which can make Atlantic basin supply more competitive for European buyers and push Brent-Dubai EFS dynamics. The route is also a direct shadow-fleet indicator: sanctioned Russian shadow fleet vessels are increasingly appearing on long-haul routes similar to TD3C, pushing up freight rates as compliant shipping capacity tightens.