According to the Gibson report, in the week ending January 12, 2018, volume wasn’t a problem for VLCC owners. However, heavy availability continued to have a negative impact on the rate. As a result, the VLCC rates were capped. In the West African market, Suezmax rates dropped to rock bottom. Low rates are expected to reignite the demand. A busy spell is expected for Suezmax vessels in week 3. Aframax demand in the Mediterranean region edged slightly higher at the beginning of week 2. Aframax vessels were more defensive as the week progressed due to less demand.
According to the Gibson report, Suezmax rates for the West Africa to United Kingdom route fell to $6,500 per day on January 11, 2018, from $9,000 per day the previous week. It represents a 28% fall week-over-week. Nordic American Tankers (NAT), Teekay Tankers (TNK), and Tsakos Energy Navigation (TNP) have Suezmax vessels in their fleets.
According to the same report, the Aframax rates for the route from the North Sea to the United Kingdom fell to $2,750 per day on January 11, 2018, from $4,250 per day a week ago—a 54% fall week-over-week