According to Weber’s weekly report, VLCC (very large crude carrier) fundamentals weakened considerably in last week. Souring fundamentals pushed the rates down. We saw a very slow demand environment at the start of the week, and VLCC rates concluded around year-to-date lows.
According to Weber’s Week 4 report, VLCC rates for the route from the Arabian Gulf to China dropped to $10,925 per day on January 26 from $18,389 per day on January 19, which represents a 40% fall week-over-week. The average rate for all VLCC routes dropped to $13,179 per day from $19,974 per day on January 19. The current rates are 67% lower year-over-year. Euronav (EURN) and DHT Holdings (DHT) mainly operate VLCCs.
According to Weber’s weekly report, Suezmax rates in the West African market posted new losses last week on a growing availability surplus. Suezmax rates on the route from West Africa to the United Kingdom dropped 76% from $3,479 per day on January 19 to $832 per day on January 26. The average Suezmax rates dropped to $2,654 per day on January 26 from $4,839 per day from the previous week.
The Caribbean Aframax market was markedly softer last week due to sluggish demand and a growing surplus. Aframax rates on the Caribbean route were down from $14,210 per day on January 19 to $4,000 per day. The average Aframax rates dropped from $14,370 per day on January 19 to $10,647 per day on January 12.