Suezmax tanker looking good in the coming months says broker

A new report from London-based shipbroker Gibson said that the Suezmax market could experience a firm rise in earnings over the next few weeks. With the tightening supply of VLCC tonnage in the Atlantic and growing resistance by charterers to rocketing VLCC rates, it is the best time for Suezmax owners to join the party. “The recent sharp rise in VLCC freight rates has left the rest of the tanker market trailing in their slipstream. Due to the high number of cargoes coming from the Middle East after the Chinese New Year, the demand for VLCCs has been growing rapidly. Within the last two weeks, TCE earnings on the benchmark VLCC route TD3 (ME Gulf – Japan) have jumped from $9,000/day to $49,000/day. At the same time VLCC tonnage in the West has also thinned significantly, leading to a jump in VLCC earnings on TD4 (WAF-USG) from $24,000/day at the start of February to $46,000/day currently” mentioned the report.
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Source: Hellenic Shipping News