Ody Valatsas, chartering manager at Dynacom Tankers Management Ltd., comments on the market for supertankers lifting 2 million-barrel cargoes of Middle East crude oil.
Very large crude carriers, or VLCCs, can earn $22,712 a day more loading in West Africa than in the Persian Gulf, according to data compiled by Bloomberg yesterday. Returns on the industry’s benchmark Saudi Arabia to Japan route yesterday declined 6.2 percent to $14,412 a day, a rate that’s unprofitable for some owners.
“Charterers seem quite relaxed to show their cargoes. That’s why we’ve seen only half of the December program covered. So there is the other half pent up and the West Africa market is very strong without VLCCs in position for December” cargo loadings.
That’s led to “several” vessels sailing empty to West Africa from the Persian Gulf, lowering the supply of carriers available for hire in the world’s largest crude oil loading region, Valatsas said.