Broker reports are alight with VLCC period charter activity — a massive boost for the sector.
There have reportedly been seven VLCC charters in the past couple of weeks, with news of four circulating in the market this week as both the period and spot markets take a turn for the better.
Leading the way was a deal Angelicoussis Group’s Maran Tanker Management hashed out with Marathon for the 319,398-dwt scrubber-fitted, eco-designed Maran Apollo (built 2016).
The Texas oil company will take the vessel for three years at $55,000 per day.
Elsewhere, Sinokor was behind a trio of fixtures.
In late July, it took the Mitsui OSK Lines-linked 306,033-dwt Kashimasan (built 2007) on charter for a year at $40,000 per day before fixing the 299,998-dwt Advantage Verity (built 2016) for three years at $53,500 per day.
It also struck a deal with VS Tankers for the 320,596-dwt Dijilah (built 2019) for three years at $53,500 per day.
Only the Kashimasan lacked a scrubber or eco-design.
The owners of the various vessels have been approached for comment.
The one-year fixtures fell short of Clarksons’ most recent assessment, with the shipbroking giant pegging a one-year time charter for a scrubber-fitted, eco-designed VLCC at $54,000 per day.
But the three-year deals beat its $52,500 per day estimation.
VLCC time-charter fixtures have been few and far between so far this year, with just nine recorded in early July.
The seven bring the total to 16 on the year, up from just 12 in 2023.
Figures from Clarksons show 22 fixed in 2022 and 23 in 2021.
Spot strength, too
The period deals come as VLCC spot rates have come back from the doldrums.
The Baltic Exchange’s VLCC time-charter equivalent assessment shot up by over $9,500 per day last week, hitting $37,010 per day on 16 August.
In its weekly report, Fearnleys had a steeper climb versus the Baltic Exchange’s typically more muted figures.
Analysts there said VLCCs jumped $13,000 per day to $40,000 per day.
It said rising activity in the Middle East Gulf was pushing rates up.
“According to seasonality, we were due for a rebound in the coming weeks and the question remains if this will be a temporary spike or if it is the start of the winter market,” Nils Thommesen and Fredrik Dybwad said in the note.
“The latter is possible, with September cargoes having hardly been touched yet.”
They said that when the winter market does come, 2m more barrels per day will be on the water, equivalent to 60 VLCCs, with tonne-mile demand further boosted by supply growth in the Atlantic basin.
Rates could hit $70,000 per day if Chinese oil demand grows in line with expectations, the analysts said.
