Spot VLCC activity in the MEG has continued to rise this week, reducing tonnage oversupply and putting rates on the ascent, brokers told Tankerworld.
‘MEG-East voyages were commanding close to WS 40 last week compared to low WS 30s in the previous week, but brokers tell Tankerworld that rates have picked up close to 10 Worldscale points over the past three days. Fearnleys for example says MEG-Japan and MEG-Singapore voyages are being fixed at WS 52.5 this week. In a note to Tankerworld on Wednesday, Dahlman Rose said that “the VLCC market has firmed on accelerated activity” with freight earnings to move crude from the MEG to the Far East surpassing $25,000 per day per vessel. The benchmark MEG-Korea route was earning about $19,000 per day per vessel last week. On Tuesday, 10 VLCCs were fixed to move MEG crude to the Far East, according to Dahlman Rose, and further 6-7 fixtures were being concluded on Wednesday, with 4 headed to the US.
IMAREX reported that spot VLCC activity surged on Tuesday as 12 new cargoes were covered and at higher rates.