Why VLCC Rates Just Hit New Multiyear Lows
According to Weber’s Week 32 report, VLCC (very larger crude carrier) rates were softer in last week (ended August 11) due to a pullback in demand in the Middle East. Last week, 15 VLCC fixtures were recorded in the Middle East, which is 35% lower than in the previous week.
In West Africa, nine fixtures were recorded, which is also lower than in the previous week.
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The average VLCC rates saw fresh multiyear lows. According to Weber’s report, VLCC rates for the West Africa to China route fell to $17,541 per day on August 11, 2017, from $17,783 per day on August 4. The average rate for all VLCC routes fell from $16,143 per day from $12,741 per day in the previous week.
According to Weber’s report for the 32nd week of 2017, in West Africa, seven Suezmax fixtures were reported last week—46% fewer than in the previous week. But Suezmax rates remained largely unchanged.
According to the same report, Suezmax rates on the route from West Africa to the UK were $5,612 per day on August 11, compared with $5,751 per day on August 4. The average rate for all Suezmax routes were $7,118 per day, compared with $7,249 per day on August 4.
According to Weber’s latest report, Aframax rates on the Caribbean route dropped to $1,584 per day, down from $3,183 per day on August 4. The average rate for all Aframax routes fell from $3,341 per day to $2,783 per day last week.