Spot VLCC earnings rose by more than 10% on Monday as charterers were busy fixing vessels from the main export regions before Christmas.
The Baltic Exchange estimated earnings of a non-scrubber unit on the Middle East Gulf (MEG)-China route at $17,486 per day on Monday, the highest in three months and up from $15,075 last Friday.
Chinese chartering giant Unipec tentatively booked the 314,000-dwt C Glory (built 2009) for the trade at Worldscale 37.5 for a loading date between 7 and 9 January, data from Tanker International shows.
On a round-voyage basis excluding idle days, the scrubber-fitted ship is estimated to earn $25,199 per day from the charter.
According to the Baltic Exchange, spot VLCC earnings on the West Africa-China route rose to $18,583 per day from $16,728 on Friday, while earnings for the US Gulf-China trade increased to $17,834 per day from $15,785.
The tonnage list has been tightening following busy activity in the Atlantic basin in recent days, and charterers in the Middle East are facing limited choices, some brokers said.
“The market in the west maintains good levels of inquiry in most segments,” Howe Robinson Partners said in a note. “Firmer rates in the west are likely to encourage owners to ask more for the 'shorter' voyages from the MEG.”
In the east-of-Suez market, the brokerage expects charterers to cover the majority of the cargoes for loading between 1 and 10 January before the Christmas break.
In addition, Chinese owners are believed to have little tonnage availability for the beginning of next month, so their compatriot charterers have more requirements of spot vessels.
“Chinese charterers have to go to the open market,” said a commercial manager. “The MEG has been busy, and the US Gulf is getting busier.”
Figures from Tanker International show 125 VLCCs could be fixed to lift from the MEG on voyage charters this month, compared with the average level of 119 ships. 49 VLCCs have been chartered to load from the US Gulf and the eastern coast of South America in December and January.
