The Baltic Exchange’s spot rate assessment for VLCCs has risen despite markets being flat.
This is because the London exchange began using a new fuel consumption measure for its indices on Monday.
The new calculation for time charter equivalent earnings assumes lower bunker consumption due to the average vessel becoming more fuel efficient, Fearnley Securities said.
A VLCC heading from the Middle East Gulf to China is now earning $49,600 per day, up 14% from Friday.
However, the Worldscale rate assessment was flat at WS70.
Suezmaxes’ assessment rise 8% to $65,300 per day on the key Black Sea to Mediterranean and West Africa to Europe routes.
Fearnley Securities has raised its assessment of VLCC and suezmax values as the long-term market outlook firms and available secondhand tonnage remains scarce.
Shipbroker Howe Robinson partners said VLCCs had a quiet end to last week in the Middle East as January fixing came to an end.
Owners await the confirmation of February loading dates, which are expected soon.
“Rates in the western hemisphere stabilised with cargoes still there in the market,” the London shop said.
Broker BRS Group said VLCC owners were holding back from fixing in the hope that Red Sea disruption would boost rates further.
Suezmax rates to come under pressure
The tonnage supply was said to be not particularly tight in the Middle East, but tankers were in shorter supply in the Atlantic basin.
For suezmaxes, tonnage lists were longer after a quiet spell, with rates in the Atlantic expected to come under downward pressure.
“However, due to current geopolitical factors, sentiment is keeping rates steady in other areas of the market for now,” Howe Robinson added.
