In the last part of this series, we saw how the BDTI (Baltic Dirty Tanker Index) finally showed an uptick after many days of falling continuously. In this part, we’ll take a look at crude (DBO) tanker rates. We’ll see which crude tankers performed the best in Week 33, which helped the BDTI to rise.
Almost every week, it’s the large vessel–VLCC (very large crude carrier) that’s the central point of discussions when reviewing crude tanker rates. This week, with a 30% week-over-week increase, Aframax tankers are the talk.
According to the Weber Weekly report, the Aframax rate for the Caribbean to the US Gulf route increased to $11,373 per day on August 19, 2016, from $8,745 per day on August 12, 2016. According to the same report, Caribbean activity increased with the fixture total rising to a three-month high of 20 as Latin America sought more US crude oil.
US crude oil exports are on the rise. This is especially beneficial for the Aframax segment, since US oil exports take place mostly through Aframax vessels. US ports are not yet equipped to handle larger vessels. Teekay Tankers (TNK), Tsakos Energy Navigation (TNP), and DHT Holdings (DHT) have Aframaxes in their fleets.
According to Weber’s weekly report, despite slowing demand, VLCC rates saw a slight uptick in Week 33. Rates on the benchmark route (or TD3) rose to $19,065 per day on August 19, 2016, from $18,314 per day a week before on August 12, 2016. DHT Holdings (DHT) and Euronav (EURN) primarily operate VLCCs.
The free fall of Suezmax rates continued, with rates declining to $1,064 per day on August 19 from $1,671 per day on August 12, according to the Weber report. These are some of the lowest rates this year. Nordic American Tankers (NAT) operates only Suezmax vessels. Teekay Tankers (TNK) and Tsakos Energy Navigation (TNP) have Suezmax vessels in their fleets.