According to Weber’s weekly report, fresh appearances on the Middle East position list saw the May surplus rise to a fresh multiyear high. As a result, the rates fell at the beginning of the week 20. However, the rates rebounded modestly later in the week.
According to the same report, the VLCC rates for the route from the Arabian Gulf to China rose to $8,526 per day on May 18 from $7,360 per day on May 11. The average rate for all VLCC routes rose to $9,767 per day on May 18 from $8,463 per day on May 11.
The current rates are 62% lower year-over-year. The rates are significantly lower than the rates that the companies achieved in the fourth quarter of 2017. In that quarter, 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 Suezmax rates in the West African market rose modestly in week 20 due to strong demand and rising bunker prices. In week 20, 19 fixtures were reported—ten higher than the previous week and the highest level in the past ten months.
According to the same report, the Suezmax rates on the route from West Africa to the United Kingdom rose to $3,818 per day on May 18 from $2,510 per day on May 11. The average Suezmax rates rose to $6,986 per day on May 18 from $6,258 per day on May 11.
Nordic American Tankers’ (NAT) fleet consists solely of Suezmax vessels. For Teekay Tankers (TNK), 50.0% of its fleet consists of Suezmax vessels, while 43.0% of Tsakos Energy Navigation’s (TNP) crude tanker fleet is consists of Suezmax vessels.
According to Weber’s weekly report, the Caribbean Aframax market was stronger in week 20. The rate on the Caribbean route rose to $11,659 per day on May 18 from $7,502 per day on May 11. The average Aframax rate on all of the routes rose from $6,358 per day to $11,927 per day on May 18.