While VLCC earnings have yet to see the benefit, hovering just above $20,000 a day, suezmax and aframax spot market earnings in the third quarter to date are at their highest for Q3 since 2008.
Teekay Tankers ceo, Kevin McKay, in the company's recent second quarter earnings release said: “While we expect rates to soften from the current high levels, we believe that stronger oil demand, limited tanker fleet growth and improving global economic conditions will continue to support a general firming of average spot tanker rates.”
The company is backing its forecast with action, chartering in ships and reducing the fixed rate coverage of its fleet. Fixed rate coverage for the next year is down to 26% from almost 50% a couple of years ago thereby giving the company much greater spot exposure.
VLCC and suezmax powerhouse, Euronav, seems to share the view saying crude tanker rates should remain strong in the coming months due to positive seasonal demand factors and improving underlying supply/demand fundamentals.
It too has backed its confidence with action this year acquiring 15 VLCCs from Maersk and an additional four VLCCs.
Charterers seem to be taking a similar view. One-year time charter rates for a modern VLCC are up to almost $30,000 a day, according to Clarkson Research estimates against an average for last year of under $20,000 a day. Figures for suezmaxes and aframaxes have risen commensurately. Although these estimates are based on only a handful of fixtures in each sector, they are surely indicative.
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