According to Weber’s weekly report, the demand for the VLCC (very large crude carriers) market rebounded strongly across all of the regions in week 9—week ending March 2, 2018. In the Middle East market, 36 VLCC fixtures were recorded, which is 24% higher week-over-week.
According to Weber’s week 9 report, VLCC rates for the route from the Arabian Gulf to China dropped from $8,406 per day on February 23 to $7,294 per day on March 2—a 13.2% drop week-over-week. The average rate for all VLCC routes rose from $10,574 per day on February 23 to $10,746 per day on March 2. The current rates are 54% lower year-over-year. In 4Q17, Euronav (EURN) earned a spot rate of $25,889 per day for its VLCCs. During the same period, DHT Holdings (DHT) earned a spot rate of $19,600 per day for its VLCCs.
According to Weber’s weekly report, the West African Suezmax market experienced strong gains due to stronger demand. The fixture tally rose to 18—a six-week high.
Suezmax rates on the route from West Africa to the United Kingdom rose to $13,860 per day on March 2 from $1,816 per day on February 23, 2018. The average Suezmax rates rose to $10,500 per day on March 2 from $3,085 per day on February 23, 2018.
Nordic American Tankers (NAT) only has Suezmax vessels in its fleet. For Teekay Tankers (TNK), 50% of its fleet is Suezmax vessels. For Tsakos Energy Navigation (TNP), 43% of its crude tanker fleet is Suezmax vessels.
According to the same report, the rates on the Caribbean route rose to $11,881 per day on March 2 from $10,561 per day on February 23. The average Aframax rates rose to $12,929 per day on March 2—compared to $9,837 per day on February 23.