VLCC Rates Climb to Highest Levels in 2013

VLCC rates rose to $47,200/d (Worldscale 59) on November 8th for the benchmark Arabian Gulf to Far East voyage, the highest level since April 17th, 2012. Average rates for 2013 have been relatively low, but the late season spike this year has been more robust than any of the previous three years. Although a far cry from the earnings seen in the mid-2000s, the recent market improvements have spurred a renewed optimism among ship owners. The rate increase was higher this year due to two main considerations: ton mile demand growth due to continued strong demand from Far Eastern buyers, and a number of VLCCs being taken for niche cargoes in the Atlantic Basin. Download here