VLCC rates continued to rise in week 41 (week ending October 13, 2017). In week 40, the rates rose 23%. In week 41, 28 fixtures were recorded in the Middle East market—a 12% rise week-over-week. The fixture tally in the West African market remains unchanged at eight, which boosted the four-week average to a three-month high.
According to Weber’s week 41 report, VLCC rates for the route from the Arabian Gulf to China rose to $30,829 per day on October 13, 2017, from $24,511 per day on October 6, 2017. The average rate for all VLCC routes rose from $25,180 per day on October 6, 2017, to $30,682 per day on October 13, 2017. The current rates are 40% lower year-over-year. Euronav (EURN) and DHT Holdings (DHT) mainly operate VLCCs.
According to Weber’s weekly report, the West African Suezmax market was strong as the regional fixture activity almost doubled. According to Weber’s week 41 report, Suezmax rates on the route from West Africa to the United Kingdom rose to $9,617 per day on October 13, 2017, from $7,646 per day on October 6, 2017. The average rate for all Suezmax vessels rose from $11,079 per day on October 6 to $13,448 per day on October 13. Nordic American Tankers (NAT), Teekay Tankers (TNK), and Tsakos Energy Navigation (TNP) have Suezmax vessels in their fleets.
The Aframax rates on the Caribbean rose from $9,739 per day on October 6, 2017, to $17,087 per day on October 13—a 75% rise week-over-week. The average rate for all Aframax routes rose to $23,475 per day from $11,703 per day.