As VLCC Rates Continue Upward Sprint, Modern Vessels Become Scarce

This week's sprint upwards by Mideast crude tanker rates is set to turn into a marathon as modern vessels become harder to find, brokers said, adding that experts are expecting W100 on shorthaul eastern routes.

Rates have surged ahead for modern VLCCs in the last three days, with W95 reported Friday for Singapore ($6.00 per ton) and Japan ($10.25) at end April/early May dates.

Less prompt Japanese fixtures were commanding W85 ($9.25 per ton) compared with under W80 ($8.50) at the beginning of the week.

A total 31 fixtures this week will leave just 38 vessels arriving in the Middle East over the next month - of which only 12 are modern - broker E.A. Gibson said in a report.