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Week 42: VLCC and Suezmax Rates Rose, Aframax Rates Fell

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VLCC rates

According to the Weber Weekly report, the VLCC (very large crude carrier) rates remained in the positive territory due to narrowing fundamentals and positive sentiment. In the Middle East market, 20 VLCC fixtures were reported in week 42 (week ending October 20, 2017). The fixtures were 33% lower week-over-week. The fixtures in the West African market fell from three from eight in the previous week.

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According to Weber’s week 42 report, VLCC rates for the route from the Arabian Gulf to China rose from $30,829 per day on October 13, 2017, to $32,938 per day on October 20, 2017. The average rate for all VLCC routes rose to $32,321 per day on October 20, 2017, from $30,682 per day on October 13, 2017. The current rates are 34% lower year-over-year. Euronav (EURN) and DHT Holdings (DHT) mainly operate VLCCs.

Suezmax rates

According to the Weber Weekly report, the West Africa Suezmax market remained strong. The rates rose for most of the routes. According to Weber’s week 42 report, the Suezmax rates on the route from West Africa to the United Kingdom rose from $9,617 per day on October 13, 2017, to $13,444 per day on October 20, 2017. The average rate for all Suezmax vessels rose to $17,010 per day on October 20 from $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.

Aframax rates

The Aframax rates on the Caribbean fell to $14,045 per day on October 13, 2017, from $17,087 per day on October 13—a 17.8% fall week-over-week. The average rate for all of the Aframax routes fell from $23,475 per day to $20,200 per day.

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