VLCC owners secure firmer numbers on Middle East Gulf–China run as October stems emerge
An early start to the October loading programme gave crude tanker owners room to push rates higher on the benchmark eastbound route.
Very large crude carrier rates on the Middle East Gulf to China route improved this week as charterers began working first-decade October stems, market sources indicated. The earlier-than-usual appearance of October cargoes met a tonnage list that had already thinned after a busy end to September fixing.
Owners reported that the balance of negotiating power shifted modestly in their favour, particularly for modern, eco-design vessels with scrubbers, which continued to command a premium over older tonnage. Charterers with flexible laycans were able to secure more competitive terms by fixing further forward.
Atlantic basin activity provided additional support, with West African and US Gulf exports absorbing several ballast candidates that might otherwise have returned to the Gulf. The resulting reduction in available tonnage in the East contributed to the firmer tone.
Bunker costs remained a watch point. While rates rose in Worldscale terms, time-charter equivalent earnings were partly moderated by fuel prices at key bunkering hubs, and owners continued to weigh routing and speed decisions carefully.
Looking ahead, brokers said the sustainability of the improvement would hinge on the volume of October cargoes still to be covered and on the pace at which ballasters from the West arrive in the Gulf. The tanker desk will publish a fuller assessment in the weekly market review.
