Seatrade Asia: VLCC Rates at 5 Month High on Higher Demand from Asia

“VLCC rates at 5 month high on higher demand from Asia. It is reported that Asian demand has helped drive very large crude carrier rates to a five month high. VLCC rates from the Arabian Gulf to the Far East pushed past the W100 mark last week for the first time since February 2010. Rates have jumped from USD 41,800 per day at the start of June 2010 to USD 78,900 daily. Rates have been rising since late May and delays at Chinese ports and a pre holiday rush of fixing last week. Poten & Partners in their weekly report said that ‘The rally which has brought VLCC earnings on the Arabian Gulf Far East voyage to a five month high has been driven by the continued strength in eastern demand and improving sentiment across markets. It is interesting to note rumblings that charterers already actively pursuing tonnage with fixing dates later than mid July have played a role in driving recent activity levels. This suggests a sentiment, at least among some, that recent strength in earnings will continue.'”