- The first VLCC fixture under 2024 Worldscale rates for a West Africa-Far East voyage indicates a shift from 2023 rates, driving up Worldscale multipliers amid a surging dirty tanker market.
- Despite the slower transition for VLCC and Suezmax markets, the surge in freight rates on the WAF-East route is influenced by decreased bunker prices and market dynamics, contributing to an exceptionally busy market environment.
- Booming US Gulf demand, heightened inquiries, and a tight tonnage situation are attributed to the rise in WAF VLCC rates.
First VLCC Fixture with 2024 Worldscale Rates
The announcement of the initial Very Large Crude Carrier (VLCC) fixture under the updated 2024 Worldscale flat rates signals a shift in the West of Suez region. The charter for a West Africa-Far East voyage highlights the industry’s transition from 2023 rates, driving up Worldscale multipliers amid a rapidly strengthening dirty tanker market.
Slower Shift for VLCC and Suezmax Markets
VLCC and Suezmax markets face a slower transition to the new year’s Worldscale flat rates compared to the Aframax market. These markets, with advanced loading windows, experience less liquidity in VLCC voyages. Initial Aframax fixtures under the 2024 rates, reported on Jan. 2, indicate a trend of higher Worldscale points compared to 2023 rates, influenced by decreased bunker prices.
WAF VLCC Rates on the Rise
Despite the transition to 2024 flat rates contributing to higher Worldscale multipliers, freight rates have surged since the new year. Platts assessed the WAF-East route at w72.5 on Jan. 8, showing an increase of w11.5 in a day. The absolute freight for the 260,000 mt WAF-East route rose from $21.69/mt on Jan. 2 to a one-month high of $25.77/mt on Jan. 8. The rise in WAF VLCC rates is attributed to a booming US Gulf market, increased inquiries, and a tight tonnage situation, creating an exceptionally busy market environment.
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Source: spglobal
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