According to the Weber weekly report, VLCC (very large crude carriers) rates moved broadly higher on the back of narrowing availability of vessels in the Middle East market. Rates rose in spite of slowing demand. In the Middle East market, 20 fixtures were recorded in week three (week ending January 19, 2018), which was 46% lower week-over-week. In the West Africa market, the fixture tally was ten, the highest in the last one month.
According to Weber’s week three report, VLCC rates for the route from the Arabian Gulf to China rose from $8,691 per day on January 12, 2018, to $18,389 per day on January 19. The average rate for all VLCC routes rose from $12,050 per day to $19,974 per day on January 19, 2018. The current rates are 68% lower year-over-year. Euronav (EURN) and DHT Holdings (DHT) mainly operate VLCCs.
According to Weber’s weekly report, the West African market was stronger in the last week. Suezmax rates on the route from West Africa to the United Kingdom rose to $3,479 per day on January 19, 2018, from $2,265 per day on January 12. Teekay Tankers (TNK) and Tsakos Energy Navigation (TNP) have Suezmax vessels in their fleets. Nordic American Tankers (NAT) operates only Suezmax vessels.
Aframax rates on the Caribbean route were $14,210 per day on January 19, 2018, compared to $14,185 per day a week ago. The average Aframax rates rose to $14,370 per day on January 19, 2018, from $10,719 per day on January 12, 2018.