According to Weber’s weekly report, VLCCs (very large crude carriers) maintained the demand strength in week 30 along with the tight availability of units. The VLCC rates rose in the week ending July 27.
In the Middle East market, 30 VLCC fixtures were observed—one higher than the previous week. In the West African market, there were eight VLCC fixtures—two less than the previous week.
According to the same report, the VLCC rates for the Arabian Gulf-China route rose from $14,411 per day on July 20 to $18,651 per day on July 27. The VLCC routes’ average rate rose from $14,672 per day to $18,623 per day on July 27.
The current rates are 27% 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 fell from $7,184 to $6,451 per day on July 20–27. The average Suezmax rates fell from $9,692 to $8,964 per day on July 27. 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 average Aframax rates in week 30 rose to $15,669 per day from $11,691 per day a week ago.