TD3C is the Baltic Exchange's benchmark dirty-tanker rate for moving 270,000 tonnes of crude oil from Ras Tanura (Saudi Arabia) to Ningbo (China) on a VLCC. It is quoted in Worldscale points — a percentage of an annually published flat rate denominated in $/tonne for that specific route.
Why it matters
The Arabian Gulf to China corridor moves the largest single flow of seaborne crude in the world. TD3C is therefore one of the cleanest live signals on:
- Chinese crude buying appetite (chartering activity is leading-indicator of run rates)
- VLCC supply / availability — particularly out of the Middle East
- Bunker prices, which feed directly into voyage economics
- Geopolitical re-routing risk (Hormuz tension, sanctions, war-risk premia)
How traders read it
A traders' first conversion is Worldscale → $/bbl: TD3C in WS, multiplied by the flat rate in $/tonne, divided by the cargo's barrels-per-tonne yield. That gives a freight cost per barrel that can be subtracted from any landed price to compute a netback for the seller.
When TD3C jumps without an obvious supply-side cause, it usually signals fresh Chinese demand or re-routing. When it collapses, it often points to refinery turnarounds, weak margins, or sudden VLCC length opening up.
Common pitfalls
- Worldscale flat rates reset annually — same WS doesn't mean same $/bbl year-on-year.
- Bunker fuel price (VLSFO) is decisive in voyage P&L; ignore it and the rate is misleading.
- TD3C is a spot benchmark — long-term COA economics may differ.