VLCC Spot Rates Start Week on a Solid Note
Middle East to Japan route rises 21% on week to above $22,500 per day
According to MANA, VERY large crude carrier spot rates have kicked off this week with a strong push to above $22,500 per day for the benchmark Middle East to Japan route, on the back of strong enquiries and healthy crude demand.
Monday’s benchmark Middle East to Japan route was 21% up on a week ago, and helped push the benchmark VLCC time charter equivalent on the Baltic Exchange to $9,898 per day, up 40% from a week earlier.
Up to the end of last week, the market was still largely balanced, with strong Middle East demand offsetting a long tonnage list and Chinese enquiries picking up in West Africa.
This week, strong enquiries for the remainder of July are helping to boost the market.
Additionally, the number of VLCCs has reached a new all-time high due to new vessel deliveries, shipping analyst Court Smith said, adding that industry data showed a total fleet size of over 720 ships.