Suezmax Rates Rose 87% in Week 39
According to the Weber week 39 report, VLCC (very large crude carrier) rates continued to rise as market participants took stock of narrowing fundamentals following fresh demand. In the Middle East market, 33 VLCC fixtured were observed—22% higher than the previous week. The West African market’s fixture tally rose by one to seven. The report also suggests that the surplus availability is lower.
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According to Weber’s week 39 report, VLCC rates for the route from the Arabian Gulf to China rose to $17,471 per day on September 29, 2017, from $12,564 per day on September 22. The average rate for all VLCC routes rose from $15,422 per day on September 22 to $20,453 per day on September 29. The current rates are 27% lower year-over-year. Euronav (EURN) and DHT Holdings (DHT) mainly operate VLCCs.
In week 39, Suezmax rates were strong following tight supply and improved demand in West Africa, Middle East, and Caribbean markets. The West Africa market observed 11 fixtures—two higher than the previous week.
Suezmax rates on the route from West Africa to the United Kingdom rose to $10,355 per day on September 29, 2017, from $4,441 per day on September 22. The average rate for all Suezmax routes rose from $6,995 per day to $13,099 per day on September 29—an 87% rise week-over-week.
Aframax rates on the Caribbean route fell from $16,924 per day on September 22 to $13,984 per day on September 29, 2017. The average rate for all Aframax routes fell to $12,776 per day from $16,049 per day.