VLCC Rates Are near Multiyear Lows
According to Weber’s report for week 34, the VLCC (very large crude carrier) market remained in negative sentiment territory. The Middle East market recorded 22 VLCC fixtures—three less compared to the previous week. The West African VLCC market only observed four VLCC fixtures—half of the previous week and the lowest in the past month.
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According to Weber’s report, VLCC rates for the route from the Arabian Gulf to China fell from $10,809 per day on August 18, 2017, to $8,747 per day on August 25. The average rate for all VLCC routes fell to $12,746 per day on August 25 from $13,694 the previous week. The rates are just above the multiyear lows of $12,741 per day recorded in the week ending August 11, 2017. The current rates are 36% lower year-over-year.
According to Weber’s report for week 34, the Suezmax market was softer in week 34 despite stronger demand due to excess supply. In the West Africa Suezmax market, 16 fresh fixtures were reported—a 220% weekly gain.
Suezmax rates on the route from West Africa to the United Kingdom fell from $7,110 per day on August 18 to $3,845 per day on August 25. The average rate for all Suezmax routes fell to $5,668 per day on August 25 from $9,037 per day the previous week.
According to Weber’s report, Aframax rates on the Caribbean route rose to $20,920 per day on August 25 from $3,473 per day the previous week. The average rate for all Aframax routes rose from $3,494 per day to $10,158 per day.