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Very Large Crude Carrier Rates Rise 64% in Week 14

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Tanker rates

In the previous part of this series, we saw that the BDTI (Baltic Dirty Tanker Index) dropped in week 14, which ended on April 7, 2017. In this part, we’ll take a look at crude oil (DBO) tanker rates. Let’s see which tankers performed the best and the worst in week 14.

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VLCC

In the previous week, the VLCC (very large crude carrier) demand in the West African market spiked with the fixture tally reaching a ten-week high. According to the Weber Weekly Report, the fixture tally in this region remained unchanged, boosting the region’s four-week moving average to a record high.

According to the same report, VLCC rates on the benchmark route rose from $13,871 per day on March 31, 2017, to $19,936 per day on April 7, 2017. The average rate for all VLCC routes rose from $18,315 per day to $30,087 per day for the same period, a 64% rise week-over-week. DHT Holdings (DHT) and Euronav (EURN) primarily operate VLCCs.

Suezmax rates

In the previous week, the Suezmax market remained quiet. According to the Weber Weekly report in week 14, the market remained sluggish as a large share of spot cargoes was captured by VLCCs. In the West African Suezmax market, only seven fixtures were recorded, which pushed the four-week average to the lowest level since 3Q16.

According to the same report, the Suezmax rate on the benchmark route fell to $12,366 per day on March 24, 2017, from $15,426 per day on March 31, 2017. The average rate for all Suezmax routes fell from $19,793 per day on March 31, 2017, to $11,922 per day.

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 rose from $3,369 per day on March 31, 2017, to $4,245 per day on April 7, 2017. However, the average rate for all Aframax routes fell to $11,341 per day from $19,793 per day for the same period.

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