Medium Range clean tanker rate on the US Gulf Coast to Northwest Europe voyage, basis 38,000 mt, hit fresh 2014 highs on tight tonnage and a flurry of activity with rising RINs basket cost, shipping and trading sources said Thursday.

According to Platts data, MR tanker rates on the USGC-NWE route, basis 38,000 mt, firmed $3.32/mt over the day to $27.66 Wednesday, equal to Worldscale 125, the highest assessed since December 2, 2013, when the rate on the route was $27.80/mt.

“The diesel arbitrage from USGC-NWE route, basis 38,000 mt, is shut, but there is a rush to fix ULSD cargoes due to RINs price spiking,” a US based shipbroker said.

Meanwhile, shipping sources indicated freight rates on the USGC-Transatlantic route at w150 ($33.19/mt) early Thursday, after a ship went on subjects at those levels.

The MR Sirius, owned by Empire Navigation, was heard on subs loading a 38,000 mt cargo with a laycan of July 1-3 from USGC to NWE at Worldscale 150.

The ship owner was not immediately available to comment on the details.

US based shipping and trading sources said the rising RINs basket cost Friday of last week led to a surge in ULSD exports from the US Gulf Coast, but the soaring freight costs have calmed diesel and jet markets that were looking to Europe as a key outlet.

“It is pretty quiet. Everybody is watching freight,” a trader said. “Apparently, there are no boats.”

The RINs basket price rose to nearly 6 cents/gal Friday of last week, up more than 1 cent/gal from two days earlier.

“We were seeing guys panic that normally don’t freak out trying to find ships,” one shipping source said Monday. “There is less inquiry this week but guys are still out there today.”

There were still three cargoes to be covered on the USGC-NWE route, basis 38,000 mt, shipping sources said.

For on-road diesel and gasoline, Platts calculates a RINs value based on US Renewable Fuel Standard obligations. The calculation is based on a basket of four types of RINs: cellulosic biofuel, biodiesel, advanced biofuel (sugar-based ethanol) and renewable biofuel (corn-based ethanol).