According to Weber’s weekly report, VLCC demand was slower than expected last week, creating a fresh surplus of availability. The demand in the Middle East market declined 12% week-over-week to 22 fixtures. The VLCC fixtures in the West Africa market remained unchanged at five.
According to the same report, VLCC rates for the route from the Arabian Gulf to China fell from $14,531 per day on April 6, 2018, to $6,914 per day on April 13. The average rate for all VLCC routes dropped from $15,458 per day on April 6 to $8,766 per day on April 13. The current rates are 55% 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 the Weber weekly report, after week 14’s hectic pace, in week 15, the Suezmax West African market was slow. Suezmax rates on the route from West Africa to the United Kingdom dropped from $2,737 per day on April 6 to $781 per day on April 13, 2018. The average Suezmax rates dropped to $4,523 per day on April 13 from $5,426 per day on April 6, 2018. Nordic American Tankers (NAT) only has Suezmax vessels in its fleet. 50% of Teekay Tankers’ (TNK) fleet consists of Suezmax vessels. 43% of Tsakos Energy Navigation’s (TNP) crude tanker fleet is Suezmax vessels.
According to Weber’s weekly report, the Aframax rates gained traction due to sustained robust activity. The rate on the Caribbean route rose from $5,406 per day on April 6 to $6,443 per day on April 13, 2018.