Release time: Tuesday, September 18, 2018
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Compared with the previous month,VLCC rates registered still gains. Despite frequent fluctuations,several markets showed higher freight rates in August. In the latest monthly report, OPEC said that average dirty spot freight rates in the tanker market increased in August from the previous month by 7%. The average increase was driven mainly by gains registered for the VLCC and Aframax classes.

Moreover, rates in the Caribbean, West Africa and the Middle East increased as a result of enhanced tonnage demand, while rates in Asia were also supported by port delays. Ongoing ullage delays on the US Gulf Cost (USGC) were the main driver behind the freight rate increase.

Preliminary data showed that OPEC sailings declined by 0.8% m-o-m in August, averaging 24.77 mb/d, which is 0.77 mb/d or 3.2% higher than in the same month a year earlier. Following improved sentiment at the end of July, VLCC August spot freight rates in August increased in general.

Nevertheless, weather delays at Far Eastern ports prevented freight rates from declining significantly, as the availability of modern vessels was thinning.High fixtures for the month of September provided support to higher freight rates, mainly in the Middle East, causing VLCC spot rates to rise on all major trading routes in August, despite an average increase of 13% from one month before.

Middle East-to-East and Middle East-to-West spot freight rates rose by 11% and 26%, respectively, from the previous month, and spot freight rates on the West Africa-to-East route increased by 11%.
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