Table of Contents Table of Contents
Previous Page  76 / 106 Next Page
Information
Show Menu
Previous Page 76 / 106 Next Page
Page Background

Tanker Market

68

OPEC Monthly Oil Market Report – October 2017

Clean tanker freight rates

Clean tanker market sentiment developed positively in September. On average, spot freight rates for vessels

trading on East of Suez routes rose by 17% from the previous month and by 28% in the West of Suez.

Table 7 - 6: Clean spot tanker freight rates, Worldscale

September was an eventful month for clean tankers. Rates were stimulated by higher tonnage demand for

medium-range (MR) tankers in

East of Suez

, which increased steadily on all major trading routes. Average

spot freight rates for tankers operating on the Middle East-to-East and Singapore-to-East routes rose by

WS12 point and WS36 points, respectively, from the previous month. A firmer tanker market was also seen

in the market

West of Suez

. MR tankers trading on the West of Suez route achieved higher freight rates

along several major routes.

In the

Mediterranean

, freight rates increased remarkably as the market balanced and tonnage demand was

steady. Moreover, occasional tight vessel availability – driven by an active Black Sea market – provided

further support to rates. Thus, spot freight rates for tankers operating on the Mediterranean-to-Mediterranean

and Mediterranean-to-Northwest Europe routes increased by 39% and 37%, respectively, in September to

stand at WS165 points and WS174 points, respectively.

Clean spot freight rates on the Northwest Europe-to-US East Coast (USEC) route increased by WS9 points

to stand at WS134 points. Rates in the Caribbean fluctuated as they started higher at the beginning of the

month before the hurricane effect subsided. Open supply for vessels grew and all prompt requirements were

met easily, thus pushing rates down closer to pre-hurricane levels.

Size

Change

1,000 DWT

Jul 17 Aug 17 Sep 17 Sep 17/Aug 17

East of Suez

Middle East/East

30-35

114

127

139

12

Singapore/East

30-35

147

155

191

36

West of Suez

Northwest Europe/US East Coast

33-37

126

125

134

9

Mediterranean/Mediterranean

30-35

133

118

165

46

Mediterranean/Northwest Europe

30-35

143

127

174

47

Sources: Argus Media and OPEC Secretariat.