Week 29: Suezmax Fixture Activity Fell
According to Weber’s report for week 29, VLCC (very large crude carrier) rates were under negative pressure and rates fell close to a two-month low. The demand in the Middle East market was strong and fixtures rose 85% from the previous week’s YTD low of 24. On one hand, the demand has increased but supply also increased. According to the Weber report, the surplus July Middle East VLCCs rose to 21, while the expectation was 15. The surplus VLCCs are at a two-month high and eight more than the average count in 1H17.
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According to Weber’s report, VLCC rates for the West Africa to China route fell from $22,744 per day on July 14, 2017, to $18,487 per day on July 21. The average rate for all VLCC routes fell from $21,827 per day to $19,907 per day on July 21, 2017. Euronav (EURN) and DHT Holdings (DHT) mainly operate VLCCs.
According to Weber’s report, the West African Suezmax market observed a fresh decline in demand after having higher fixture activity for three weeks. Only six fixtures were reported in the West African Market, which is 65% lower than the previous week.
According to the same report, Suezmax rates on the route from West Africa to the United Kingdom were $5,658 per day on July 21, 2017—compared to $6,222 per day on July 14. The average rate for all Suezmax routes was $7,842 per day on July 21, 2017—compared to $7,861 per day on July 14. Teekay Tankers (TNK) and Tsakos Energy Navigation (TNP) have Suezmax vessels in their fleets. Nordic American Tankers (NAT) operates Suezmax vessels.
According to Weber’s report for week 29, Aframax rates on the Caribbean route rose from $3,861 per day on July 14, 2017, to $7,235 per day on July 21. The average rate for all Aframax routes rose to $7,758 per day from $5,219 per day on July 14.