VLCC rates out of the Middle East Gulf have roared back in recent weeks to become the richest route in an ever-stronger market.
Clarksons assessed a Middle East Gulf to China voyage for a scrubber-fitted, eco-designed VLCC at $66,600 per day on Thursday.
This marks a 12.1% gain from the previous day, a 31.5% climb week over week and a 58.6% leap from 1 February.
“Spot volumes have been fairly active in the Middle East over the past two weeks and last week was notably much busier out of the US Gulf,” Jefferies analyst Omar Nokta said on Thursday.
He noted that VLCC spot rates appeared to be at a three-month high.
The bank’s data shows a scrubber-fitted, eco-designed ship earning $71,800 per day, while a standard VLCC could earn $57,400 per day.
“This week the theme continues, with around 20 VLCCs booked out of the [Middle East Gulf] during the first three days of this week, as charterers finalise late February loadings before March fixtures commence,” he added.
Earlier in the week it was activity in the Atlantic basin that was pushing up the VLCC market — for months a laggard behind suezmaxes and aframaxes — but data from Tankers International shows rich fixtures for ships out of the Middle East.
On Wednesday, the 309,800-dwt Embiricos-operated Serifos (built 2009) was fixed to the Indian Oil Corp to sail to the east coast of India later this month for $79,806 per day.
On Thursday, NSRP chartered the Onassis-linked 318,700-dwt Olympic Life (built 2019) at $76,025 per day to ship crude to Vietnam in early March.
‘Strong signal’
In his note, Nokta suggested the firmer market could continue for some time.
“It is usually a strong signal for VLCCs when rates lift at the conclusion of one month’s programme just as the next one is set to begin,” he said.
Rates continued to climb in the two other routes Clarksons assesses, with a scrubber-fitted, eco-designed VLCC sailing from the US Gulf to China said to be earning $52,800 per day, 1.6% higher than Wednesday.
The same ship sailing from West Africa to China was assessed at $66,400 per day, up 9.2% day over day.
The broker’s fleet weighted average for the three routes hit $65,600 per day, a growth of 9.3% from Wednesday and 25.5% from last week.
