A weak VLCC spot market has sprung back into life as new October cargoes boosted rates.
The Baltic Exchange’s assessment for the Middle East Gulf to China route increased 93% from the previous day to $18,600 per day.
Pools operator Tankers International reported Onassis’ 318,700-dwt Olympic Laurel (built 2019) booked by ExxonMobil from West Africa to Singapore at nearly $30,000 per day over 75 days.
Clarksons Research assessed eco ships as averaging $38,000 per day on Thursday, a 25% increase from Wednesday and a 57% increase in the past week.
These ships could earn a further $4,500 with a scrubber fitted, the investment bank believes.
Analysts Frode Morkedal and Even Kolsgaard said: “October loading dates from the Middle East were released to the market earlier this week, and charterers jumped off the fence, driving rates higher.”
Brokers reported that the improvement has been bolstered by limited available tonnage in the Atlantic and several cargoes being booked from West Africa.
This has resulted “in a significantly positive shift in market sentiment”, Clarksons Securities added.
Despite a clear seasonal trend, rising freight rates at this time of year continue to surprise many investors, the analysts argue.
“Higher activity corresponds to refineries preparing for their end-of-maintenance phase in November,” they said.
Cargoes loaded in October are scheduled to arrive in November, just as refinery production ramps up.
“And chartering decisions are typically made two to three weeks ahead of loading dates, which is precisely the time frame we are currently in,” Morkedal and Kolsgaard added.
“Current market dynamics strongly favour shipowners, and freight rates are expected to rise further.”
Forward freight agreement markets were also active, with December contracts for eco VLCCs now priced in the mid-$60,000s.
French shipbroker BRS said owners had grown cautiously optimistic in the previous week, with charterers “quietly approaching the market”.
Ships on subjects led to a reduced tonnage list, increasing sentiment, it added.
