VLCC Demand in West Africa Reached a 6-Year High

VLCC rates

According to Weber’s week 50 report, VLCC (very large crude carrier) demand in the Middle East market strengthened, while the demand in the West African market rose to a six-year high.

VLCC Demand in West Africa Reached a 6-Year High

In the Middle East market, 33 VLCC fixtures were observed—27% higher week-over-week. In the West African market, 13 VLCC fixtures were observed—the highest since late 2011 and ten higher than the previous week. The rise in demand didn’t really boost VLCC rates.

According to Weber’s week 50 report, VLCC rates for the route from the Arabian Gulf to China fell to $12,569 per day on December 15, 2017, from $14,938 per day on December 8, 2017. The average rate for all VLCC routes fell to $16,057 per day on December 15, 2017, from $16,832 per day on December 8, 2017. The current rates are 72% lower year-over-year. DHT Holdings (DHT) and Euronav (EURN) mainly operate VLCCs.

Suezmax rates

According to Weber’s weekly report, rates in West African Suezmax market were soft. The expected demand gains materialized but weren’t enough to counter fresh availability. In West Africa, 13 Suezmax fixtures were recorded—a 63% weekly gain and the highest in the last two months. According to Weber’s week 50 report, the Suezmax rates on the route from West Africa to the United Kingdom fell from $19,133 per day on December 8, 2017, to $18,033 per day on December 15, 2017. The average rate for all Suezmax vessels fell to $18,125 per day on December 15 to $19,048 per day on December 8.

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 fell to $17,450 per day on December 15, 2017, from $26,578 per day on December 8. The average rate for all of the Aframax routes fell to $12,389 per day from $14,230 per day.