Very large crude carrier rates
According to Charles R. Weber’s weekly report, VLCC (very large crude carrier) demand across all key global markets was muted last week, softening rates. In the Middle East, VLCC fixtures fell 39% week-over-week to 25, and in West Africa, VLCC fixtures fell by five week-over-week to three fixtures.
According to the same report, VLCC rates for the Arabian Gulf–China route dropped from $16,872 to $15,948 per day between July 6 and 13, and VLCC routes’ average rate dropped from $16,103 to $14,259 per day.
The current rates are 26% lower year-over-year, and lower than the rates the companies achieved in the first quarter. In the first quarter, Euronav (EURN) earned a VLCC spot rate of $18,725 per day, and DHT Holdings (DHT) earned a VLCC spot rate of $20,200 per day.
According to Charles R. Weber’s report, due to softer demand in West Africa, Suezmax rates slipped modestly in Week 28. Suezmax rates on the West Africa–UK route dropped from $7,403 to $6,473 per day between July 6 and 13, and average Suezmax rates dropped from $9,905 to $9,806 per day. Nordic American Tankers’ (NAT) fleet consists solely of Suezmax vessels, whereas Teekay Tankers’ (TNK) fleet is 50.0% Suezmax vessels and Tsakos Energy Navigation’s (TNP) is 43.0% Suezmax vessels.