VLCC spot rates flat on MEG tonnage over-supply

The VLCC spot market has seen its second week of heightened activity on the back of May requirements, but current rates remain flat as charterers have the advantage of a lingering over-supply in tonnage avails, brokers tell Tankerworld.

Rates had finally climbed last week after a long decline, but levels remain the same this week with brokers reporting MEG-East voyages around WS 35 and MEG-West voyages around WS 25.The Atlantic market, however, saw a rise in rates on the back of increasing volumes used for floating storage which has put a slight squeeze on available VLCCs in the area.Brokers were reporting the benchmark Bonny-Loop route at WS 50 towards the end of last week, compared to WS 42 in the previous week “It’s been another active week in the VLCC market as the May cargo program has come under-way in earnest. Ominously for owners, however, they have not been able to capitalise on this to any meaningful degree,” said Bassøe last Friday.

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