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VLCC Rates Up, Suezmax Rates Down in Week 11

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Updated

Tanker rates

In the previous part of the series, we saw how the BDTI (Baltic Dirty Tanker Index) changed in the week ended March 17, 2017. In this article, we’ll take a look at crude (DBO) tanker rates. Let’s see which tankers performed the best in week 11 of 2017.

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VLCC

According to the Weber Weekly Tanker Report, in the Middle Eastern market, 14 VLCC (very large crude carrier) fixtures were recorded in week 11, a 65% fall week-over-week. In the West African market, four fixtures were recorded, a rise of one compared to the previous week but a fall of 34% year-to-date.

According to the same report, VLCC rates on the benchmark route rose from ~$18,703 per day on March 10, 2017, to ~$19,183 per day on March 17, 2017. The average rate for all VLCC routes rose from $22,578 per day to $23,731 per day. DHT Holdings (DHT) and Euronav (EURN) primarily operate VLCCs.

Suezmax rates

According to the Weber Weekly Tanker Report, Suezmax rates were softer in week 11. The March program concluded on a strong note, but fell as charterers paused before progressing into the April program.

According to the same report, the Suezmax rate on the benchmark route fell to $16,604 per day on March 17, 2017. The average rate for all Suezmax routes fell to $21,258 per day on March 17 from $28,347 per day on March 10.

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 Tanker Report, Aframax rates on the Caribbean route fell to $4,990 per day on March 17 from ~$13,653 per day a week earlier. The average rate for all Aframax routes fell to $11,640 per day from $17,850 per day.

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