Shipping rates for Very Large Crude Carriers (VLCC) have reached their highest level since November 2023, rising 3.5% month-on-month to $48,171/day in February, according to data from the Centre for Monitoring Indian Economy (CMIE).
The VLCC, with a capacity of up to 320,000 deadweight tonnes, has been the primary vessel for global crude oil transportation. Conversely, Aframax and Suezmax rates experienced a decline during the same period.
Oil trade increased
The uptick in rates is attributed to increased oil trade, impacting larger vessel categories. Aframax vessels, with a capacity of around 120,000 deadweight tonnes, and Suezmax tankers, with a capacity of 180,000 deadweight tonnes, witnessed a decrease.
Moody’s Investor Services suggested limited inflation impact, citing low demand and ample ship availability. Port Watch data indicated a declining trend in Suez Canal trade volume as of February 20, 2024, raising concerns about prolonged disruptions affecting global shipping and trade.
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Source : Logisticsinsider
