Shipping rates for supertankers have recently shot up above $100,000 a day as the market for very large crude carriers (VLCC) tightens and Chinese oil demand rises.
VLCC daily rates have increased to more than $100,000 per day in March.
Chinese refiners are chartering more supertankers to bring crude later this year as the economy reopens. At the same time, the sanctions on Russia have tightened demand for all kinds of crude-carrying vessels as the voyage to Russia’s main customers now, China and India, is much longer than a week-long trip from a Russian Baltic port to northwest Europe.
“Tankers are traveling longer distances and ship availability is very tight. I think rates will stay strong for the next two years,” Lars Barstad, chief executive at Frontline, which owns and operates 22 supertankers and nearly 50 smaller vessels Suezmax and Aframax, told Tanker rates are also pushed higher by the lower availability of vessels as more ships are involved in the Russian oil trade and – due to the sanctions – have become unavailable to other shippers.
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