After a big mid-month rally, VLCC rates start March just a tick above where they were in February.
Clarksons VLCC fleet weighted average came in Friday at $46,400 per day, just above the $43,500 per day seen on 1 February but down significantly from the $80,000-plus per day rates seen in the middle of the month.
The key Middle East Gulf to China route started March at $45,800 per day, up from $42,000 per day.
The West Africa to China route climbed the highest, to $50,200 per day from $44,300 per day, while the US Gulf to China route dipped slightly to $47,800 per day from $47,500 per day.
Rates spent much of the first half of February climbing to nine-month highs, giving hope that VLCCs — which have not benefited from reshuffled oil trading patterns that followed Russia’s invasion of Ukraine the way it has smaller vessels. Then, the Middle East Gulf to China route reached $84,700 per day and the fleet weighted average $82,200 per day.
But they fell back quickly as activity dried up.
On Friday, Tankers International data shows several fixtures done later in the week at rates it projects to be loss-making.
Charterers also seemed to be seeking out older vessels, with four fixtures for ships 15 years old or older.
One of them, Dynacom’s 299,999-dwt Eliza (built 2008) was fixed to Bharat Petroleum Corp for a voyage from the Middle East Gulf to the west coast of India at $13,693 per day.
Indian Oil Corp took the Sinokor-operated, 312,105-dwt Esteem Astro (built 2019) for a voyage from the Middle East Gulf to the east coast of India at $32,275 per day.
One of the fewer, healthier fixtures was BP chartering out its 314,014-dwt KHK Majesty (built 2019) to KPC for a voyage from the Middle East Gulf to China at $57,267 per day.
All three fixtures were for voyages in mid-March.
