According to Weber’s weekly report, the VLCC (very large crude carrier) demand was stronger in week 29, which led to a rebound in VLCC rates. In week 29, 27 VLCC fixtures were observed in the Middle East market—two less than the previous week. In the West Africa market, the weekly fixtures rose to 11, which was a YTD (year-to-date) high.
According to the same report, the VLCC rates for the Arabian Gulf-China route rose to $14,411 per day on July 20 from $13,693 per day a week ago. The VLCC routes’ average rate rose to $14,672 per day from $14,259 per day on July 13.
The current rates are 29% lower year-over-year. The rates are lower than the rates that the companies achieved in the first quarter. In the first quarter, Euronav (EURN) earned a VLCC spot rate of $18,725 per day. DHT Holdings (DHT) earned a VLCC spot rate of $20,200 per day.
According to Weber’s report, the Suezmax rates on the West Africa-UK route rose to $7,184 from $6,473 per day on July 13–20. The average Suezmax rates fell to $9,692 from $9,806 per day. Nordic American Tankers’ (NAT) fleet only consists of Suezmax vessels. Teekay Tankers’ (TNK) fleet is 50.0% Suezmax vessels. Tsakos Energy Navigation’s (TNP) fleet is 43.0% Suezmax vessels.
According to Weber’s report, the Aframax rates in the Caribbean market continued to correct this week. The supply was abundant despite relatively strong demand.