According to Weber’s report for week 35, the VLCC (very large crude carrier) market remained in negative territory due to ongoing overcapacity. In the previous week, holidays in the United Kingdom and the Middle East and office closures in Houston due to Hurricane Harvey had a negative impact on tanker rates.
In the Middle East market, the fixture tally rose by one to 23. The West African market was busy with the fixture tally rising by two to six in week 34.
According to Weber’s week 35 report, VLCC rates for the route from the Arabian Gulf to China fell to $7,407 per day on September 1, 2017, from $8,747 per day on August 25. The average rate for all VLCC routes fell from $12,746 per day to $10,617 per day on September 1, 2017. The rates are at multiyear lows. The current rates are 44% lower year-over-year.
Based on Weber’s report, rates in the West African Suezmax market were stronger in week 35. Suezmax rates on the route from West Africa to the United Kingdom rose to $7,521 per day on September 1, 2017, from $3,845 per day on August 25. The average rate for all Suezmax routes rose from $5,668 per day to $9,396 per day on September 1, 2017.
According to Weber’s report, Aframax rates on the Caribbean route rose from $20,920 per day on August 25 to $22,222 per day on September 1, 2017. The average rate for all Aframax routes rose to $10,698 per day from $10,158 per day.