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Tanker Market

64

OPEC Monthly Oil Market Report – November 2017

Table 7 - 2: Tanker sailings and arrivals, mb/d

Dirty tanker freight rates

VLCC

Approaching winter,

VLCC spot freight rates

showed notable gains in October from a month before across

all reported routes. On average, VLCC spot freight rates soared by 37% m-o-m to stand at WS55 points, up

by 4% y-o-y. Rates increased on all major trading routes, mainly on the Middle East-to-East route where spot

freight rates went up by WS24 points from a month before to average WS68 points. Similarly, the chartering

market in West Africa (WAF) strengthened and earnings in both WAF and Middle East were higher. The

VLCC market saw high activity to eastern destinations, despite holidays in the Fareast. VLCC spot freight

rates on the WAF-to-East route rose by 33% to average WS68 points. October tonnage availability saw an

occasional tightening as market activities saw the usual seasonal uptick.

Table 7 - 3: Dirty VLCC spot tanker freight rates, Worldscale

VLCC Middle East-to-West spot freight rates recovered, though to a lesser extent, up by 22% in October to

stand at WS28 points, but remained below the level in the same month a year earlier. Generally, VLCCs saw

healthy demand in October on all major trading routes though spot freight rates gains varied, with a noted

difference in old and modern vessel rates.

Suezmax

Suezmax spot freight rates

continued to rise by an average of 12% in October from one month earlier,

despite an excess in ships with all replacement requirements having been met easily. Average Suezmax

freight rates remained healthy, supported by higher rates registered for tankers trading on the Northwest

Europe (NWE)-to-US Gulf Coast (USGC) route, which gained 8% to stand at WS60 points. Suezmax spot

freight rates for tankers operating on the West Africa-to-USGC route went up by 17% from a month before to

stand at WS79 points. The Suezmax market experienced occasional softer sentiment in West Africa as

activity levels varied. In the North Sea, Suezmax saw limited inquiries, while rates in the Black Sea and

Mediterranean were supported by vessels tightening and a spill-over effect from the firming Aframax market,

which supported Suezmax demand on a part-cargo basis as a suitable alternative.

Change

Aug 17

Sep 17

Oct 17

Oct 17/Sep 17

Sailings

OPEC

24.00

23.94

23.69

-0.26

Middle East

17.23

17.27

17.11

-0.16

Arrivals

North America

9.78

9.67

9.71

0.04

Europe

12.52

12.48

12.31

-0.17

Far East

8.81

8.58

8.40

-0.18

West Asia

4.64

4.60

4.82

0.21

Sources: Oil Movements and OPEC Secretariat.

Size

Change

1,000 DWT

Aug 17 Sep 17 Oct 17 Oct 17/Sep 17

Middle East/East

230-280

42

44

68

24

Middle East/West

270-285

24

23

28

5

West Africa/East

260

49

51

68

17

Sources: Argus Media and OPEC Secretariat.