According to Weber’s weekly report, VLCC (very large crude carrier) rates rallied in week 25—the week ending June 22. There was strong demand at the beginning of the week that coincided with some participants’ return following the Eid al-Fitr holiday.
The VLCC fixture tally in the Middle East market was 28 in week 25—a weekly gain of one. In the West Africa market, the VLCC fixture tally was seven—a weekly gain of one. The fixture tally is at a two-month high.
According to the same report, the VLCC rates for the route from the Arabian Gulf to China rose from $12,663 per day on June 15 to $20,499 per day on June 22. The average rate for all VLCC routes rose from $14,751 per day on June 15 to $22,126 per day on June 22.
The current rates are 19% lower year-over-year. The rates are higher than the rates that the companies achieved in the first quarter. In the first quarter, Euronav (EURN) earned a spot rate of $18,725 per day for its VLCCs. During the same period, DHT Holdings (DHT) earned a spot rate of $20,200 per day for its VLCCs.
According to Weber’s weekly report, the Suezmax West African market remained strong through the first half of the week at a sustained and elevated demand pace.
The Suezmax rates on the route from West Africa to the UK rose from $5,807 per day on June 15 to $8,534 per day on June 22. The average Suezmax rates rose from $8,609 per day on June 15 to $10,862 per day on June 22.
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 consists of Suezmax vessels.
According to Weber’s weekly report, the rate on the Caribbean route rose from $19,803 per day on June 15 to $20,570 per day on June 22. The average Aframax rate for all of the routes fell to $16,631 per day from $17,878 per day on June 15.