Freight Rates Are Falling

A lack of enquiry from Far Eastern charterers has caused VLCC freight to fall almost to the same level as the longer haul westbound routes, which usually trade much lower, brokers said Tuesday. "When the East comes back in that will change," said a London tanker analyst, adding "but it's difficult to say when that will be." London's Baltic Exchange closed on Tuesday with its assessment of VLCC freight from the Mideast Gulf to Singapore at W88.4, less than one point higher than its assessment of freight to the U.S.Gulf. This compares to a 50-point spread between the two routes in mid-November. Brokers disregarded LG's fixture on Tuesday of the New Vanguard from the Mideast Gulf to Korea at W82.5 as below market rate. - (Reuters)