By Keith Wallis

SINGAPORE, April 1 (Reuters) – Freight charges for very giant crude carriers (VLCCs), which hit a two-week excessive on Thursday, face an unsure course subsequent week, brokers mentioned.

Port delays might assist create a scarcity of tonnage that might push charges greater, however charterers could cool fixture exercise to place a ceiling on charges.

“It’s difficult to call which way the market is going to go,” a Singapore-based supertanker dealer mentioned.

“Earlier this week I thought the market was getting toppy and expected charterers to go back into their shells. But that didn’t happen,” the dealer mentioned.

“Middle East rates are probably 90 now,” on the Worldscale measure, the dealer mentioned.

That got here as VLCC constitution charges for a voyage from the Middle East to Asia climbed by greater than $24,000 per day since final Thursday, delivery knowledge tracked by Reuters confirmed.

But, Indian charterers have chartered six smaller and cheaper Suezmax tankers fairly than repair three VLCCs, brokers mentioned.

“This could signal charterers have called time on the bull run on VLCC rates,” mentioned a European-based VLCC dealer.

Rates rose after a surge in chartering exercise by Saudi Arabia’s Bahri and Chinese merchants, together with Unipec and Glasford.

Unipec has chartered round 20 VLCCs on the open market since March 24, whereas Bahri fastened about seven supertankers, Reuters knowledge confirmed.

The fixture flurry has been fuelled by charterers anxious to guide vessels amid unhealthy climate and port delays which have disrupted vessel itineraries, brokers mentioned.

“The extensive delays in Chinese ports in particular pushed charterers over the Easter holidays to secure tonnage with secure itineraries,” Norwegian ship dealer Fearnley mentioned in a observe on Wednesday.

The surge in Middle East charges has spilled over to assist supertanker freight charges from West Africa to Asia.

Strong demand by China for West African crude have boosted charges within the area.

April loadings for shipments from West Africa to Asia are set to hit greater than 2 million barrels per day (bpd), the best since July 2015.

VLCC charges from the Middle East to Japan climbed to round W87.50 on Thursday, up from W63.75 per week earlier and the best since March 16.

Supertanker charges from West Africa to China rose to about W82.50 on Thursday, their highest since March 16, from about W67.50 final Thursday.

Rates for an 80,000-dwt Aframax tanker from Southeast Asia to East Coast Australia fell to round W125.25 on Thursday from W152.

Clean tanker charges from Singapore to Japan had been round W148.50, in contrast with about W150.25 per week earlier. (Reporting by Keith Wallis; Editing by Savio D’Souza)

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