Suezmax spot rates hurtled to the highest level since January, as charterers rush to pick up tonnage to carry increased West African output.
The Baltic Exchange’s average time-charter equivalent rate jumped 10.5% today alone to approach $36,300 per day.
It was the 18th straight trading day of increases, meaning that September has seen not a single red day.
“West Africa has gone from strength to strength,” said the Baltic Exchange in its weekly tanker briefing. “Healthy levels of enquiry, especially in the Western Hemisphere, have, for both long and short haul business, seen the tonnage list thinned considerably which has put further pressure on charterers.”
Rates have nearly doubled since the end of last week, when the average TCE came in at $18,400 per day, according to Baltic Exchange data.
“With a handful of cargoes still outstanding in the First to 10th of October window the view is the market is going to continue to rise,” said UK brokerage Howe Robinson.
Brokers say that fixtures from West Africa to Europe are coming in at WorldScale 110, up from WS 65 a week ago.
Clarksons Platou Securities analyst Frode Morkedal said the rise can be linked to increased barrels from Nigeria and rising activity from the Black Sea.
“Charterers have been caught short following the plunge in rates over the summer and are now forced to rush for cover,” he wrote in a note to clients.
