Asia Tankers | VLCC Rates Could Climb on Possible Renewed Chartering - Maritime and Salvage Wolrd News

By Keith Wallis

SINGAPORE, April 17 (Reuters) – Rates for very giant crude carriers (VLCCs) on key Asian routes are prone to maintain regular or climb subsequent week if charterers launch their May fixture programme amid tighter provide of tonnage, brokers stated.

“Owners are very bullish. They have managed to hold the line even without any real cargo,” stated a Singapore-based VLCC dealer on Friday.

Charterers have been typically holding again the discharge of May cargoes, though the National Shipping Co of Saudi Arabia (Bahri) and China’s Unipec have been lively this week, in accordance with ship brokers and Reuters chartering knowledge.

The dealer stated charges might achieve if charterers launch these cargoes on Monday or Tuesday.

“If they hold back until Wednesday rates may dip,” he stated.

A rival VLCC ship dealer agreed charterers have been holding again their fixture programme from the Middle East to Asia, however added that out there tonnage was trying tight for high quality vessels.

“We can’t see the market going down presently,” the second dealer stated. Rates are in a holding sample, he added.

Rates from West Africa to Asia additionally remained robust following a surge in chartering exercise. At least 10 eastbound fixtures have been reported since April 10, in contrast with seven the earlier week, Reuters freight knowledge confirmed.

That got here after Indian and Taiwanese consumers lifted extra oil from West Africa after Saudi Arabia ended reductions and raised some costs, ship brokers stated.

“West Africa is really propping up the market – it has meant the tonnage list has stayed tight for the Middle East,” the primary VLCC dealer stated.

“Owners (are) watching carefully for any early starts of the May programme, which could propel the already firm sentiment,” a Norwegian ship dealer stated in a weekly be aware on Wednesday.

VLCC charges for the benchmark route from the Middle East to Japan climbed to round W62.5 on the Worldscale measure on Thursday, up from W59.5 final week, and the best since Feb. 13.

Supertanker charges from West Africa to China climbed to W61.5 on Thursday, in opposition to W60.5 every week earlier.

Rates for 80,000-tonne Aframax tankers from Southeast Asia to East Coast Australia slipped to round W97.5 on Thursday, in contrast with W99 final week.

Clean tanker charges from Singapore to Japan have been unchanged at round W140 on Thursday, however they might rise on the again of elevated chartering exercise, a Singapore clear tanker dealer stated.

Rates are prone to plateau or transfer sideways subsequent week, the dealer stated. (Reporting by Keith Wallis; Editing by Joseph Radford)