uploads/2017/11/spot-Rates_Week-44-2-1.jpg

Week 46: Where Did VLCC and Suezmax Rates Head?

By

Updated

VLCC rates

According to Weber’s week 46 report, VLCC (very large crude carrier) rates largely remained range bound. In week 46 (week ending November 17, 2017) 16 VLCC fixtures were recorded in the Middle East market—a 24% fall week-over-week. Six fixtures were recorded in the West African market—one higher than last week.

According to Weber’s week 46 report, VLCC rates for the route from the Arabian Gulf to China fell from $30,224 per day on November 10, 2017, to $28,266 per day on November 17, 2017. The average rate for all VLCC routes fell to $29,651 per day on November 17, 2017, from $30,711 per day on November 10, 2017. The current rates are 41% lower year-over-year. Euronav (EURN) and DHT Holdings (DHT) mainly operate VLCCs.

Suezmax rates

According to Weber’s weekly report, rates in the West Africa Suezmax market were soft for most of the week. The demand levels didn’t change from the previous week. There were 11 fixtures in the West African market.

According to Weber’s week 46 report, the Suezmax rates on the route from West Africa to the United Kingdom fell from $9,501 per day on November 10, 2017, to $8,122 per day on November 17, 2017. The average rate for all Suezmax vessels fell to $10,985 per day on November 17 from $13,449 per day on November 10.

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 route rose to $7,758 per day on November 17, 2017, from $6,515 per day on November 10. The average rate for all of the Aframax routes rose from $5,863 per day to $8,171 per day.

More From Market Realist