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Aframax Rates Rose 123% in Week 21

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Top performers

In the earlier part of this series, we saw that the BDTI (Baltic Dirty Tanker Index) rose by 22 points in week 21, which ended on May 26, 2017. In this part, we’ll find out which crude tankers performed the best and the worst in week 21.

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Gibson report

According to the Gibson Weekly Report, VLCC (very large crude carrier) inquiries in week 21 were not enough to prevent rates from deteriorating. In the West African region, Suezmax activity picked up sharply. As a result, Suezmax rates rose.

Tanker rates

According to the Gibson report, the VLCC rate on its benchmark route (or TD3) dropped by $2,500 per day to $14,000 per day on May 25, 2017, from $16,500 per day on May 18, 2017. Euronav (EURN) and DHT Holdings (DHT) primarily operate VLCCs. According to the same report, Suezmax rates on the benchmark route (or TD20) rose to $18,500 per day on May 25, 2017, from $13,250 per day in the previous week. Teekay Tankers (TNK) and Tsakos Energy Navigation (TNP) have Suezmax vessels in their fleets. Nordic American Tankers (NAT) only has Suezmax vessels in its fleet.

Aframax rates on the benchmark route (or TD7) rose by a whopping $13,250 or 123% to $24,000 per day on May 25, 2017, from $10,750 on May 18, 2017. In the previous week, Aframax rates were up by more than 200%. We’ll discuss bunker fuel prices in the next part of the series.

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