uploads/2017/02/Tanker-Rates-1.jpg

Suezmax, VLCC Rates Rose in Week 6

By

Updated

Tanker rates

In the previous part of the series, we saw how the BDTI (Baltic Dirty Tanker Index) changed in the week ended February 10, 2017. 

In this article, we’ll look at crude (DBO) tanker rates. Let’s see which tankers performed the best in week six of 2017.

Article continues below advertisement

VLCC

According to the Weber Weekly Tanker Report, inquiries for VLCC (very large crude carrier) orders picked up following the Chinese New Year holiday season. Volumes for the February 2017 program increased significantly, and VLCC rates spiked.

According to the same report, VLCC rates on the benchmark route rose to ~$38,000 per day on February 10, 2017, from ~$35,000 per day on February 3, 2017. The average rate for all VLCC routes rose from $35,000 per day to $39,000 per day. DHT Holdings (DHT) and Euronav (EURN) primarily operate VLCCs.

Suezmax rates

According to the Weber Weekly Tanker Report, the Suezmax market was active in covering final February cargoes. In the West African market, 11 fixtures were reported, a 38% week-over-week rise.

According to the same report, the Suezmax rate on the benchmark route rose to $11,125 per day on February 10, 2017, from $10,725 per day on February 3, 2016. The average rate for all Suezmax routes rose from $10,975 per day on February 3 to $11,322 per day on February 10.

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

Aframax rates

According to the Weber Weekly Tanker Report, Aframax rates on the Caribbean route fell to $4,089 per day on February 10 from ~$14,000 per day a week earlier. The average rate for all Aframax routes also fell to $12,000 per day from $15,000 per day.

Advertisement

More From Market Realist