VLCC Rates Retreat as Sailing Speeds and Supply Diverge

· Shipping

VLCC tanker rates retreated last week, according to the latest tanker market reports. In the clean market, the TC1 75kt Middle East Gulf–Japan index climbed 47 points to WS986, with the Baltic round-trip TCE gaining $14,800 to $285,400 per day; the TC20 90kt Middle East Gulf–UK Continent run rose by $2.73 million to $21.24 million, equal to $332,000 per day on a Baltic round trip. A separate Tanker Market Monitor noted diverging signals in VLCC sailing speeds: in the Arabian Gulf ballast vessels are accelerating while laden ships are slowing, with no clear improvement in overall voyage turnaround, and the western VLCC ballast surplus has narrowed. The mixed picture matters for owners deciding whether to fix at current levels or wait for a clearer direction.

Why it matters：VLCC earnings remain historically high but volatile; the speed and ballast-supply signals suggest owners face a finely balanced market where small shifts in tonnage can swing daily returns.

Key points

  • TC1 Middle East Gulf–Japan rose to WS986, TCE $285,400/day
  • TC20 Middle East Gulf–UK Continent reached $21.24 million round trip
  • Ballast ships are speeding up while laden VLCCs slow in the Arabian Gulf

Sources (original reporting)

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