uploads///Week _Tanker rates

Tanker Rates Rose in Week 46 Due to Tight Supply

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Nov. 25 2016, Published 12:15 p.m. ET

Tanker rates

In the previous part of the series, we saw how the BDTI (Baltic Dirty Tanker Index) changed in the week ending November 18, 2016. In this part, we’ll look at crude (DBO) tanker rates. Let’s see which tankers performed the best in week 46.

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VLCC rates

According to the Weber weekly report, the VLCC (very large crude carrier) market was quieter in week 46. Most of the chartering community was busy in Dubai for industry events. However, the rates remained firm due to the low supply of tankers. Recently, there has been an increase in voyage lengths.

According to the same report, the VLCC rates on the benchmark route rose from ~$43,014 per day on November 11 to ~$43,014 per day on November 11. DHT Holdings (DHT) and Euronav (EURN) primarily operate VLCCs.

Suezmax rates

According to the Weber weekly report, the weekly fixture tally in the West African market was lower by 31% week-over-week in week 46. However, there was strong demand in the Black Sea and the Mediterranean.

According to the same report, the rate on the Suezmax benchmark route rose to ~$27,156 per day on November 18—compared to ~$22,167 per day on November 11, 2016.

Nordic American Tankers (NAT) only operates Suezmax vessels. Teekay Tankers (TNK) and Tsakos Energy Navigation (TNP) have Suezmax vessels in their fleets.

Aframax rates

According to the Weber weekly report, the demand in the Caribbean market rose in week 46. The fixture tally rose more than 170% week-over-week with 19 fixtures. According to the same report, the rates on the Caribbean route rose to $25,350 per day on November 18 from ~$22,680 per day on November 11, 2016.

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