Asia's freight rates for very large crude carriers (VLCCs) loading from the Middle East/Gulf recovered from four-year lows yesterday, as charterers moved to lock in their shipping requirements for October.
Rates for VLCCs on the benchmark Gulf-to-Japan route edged up to W55 points, about five points above week-ago levels and some six points higher than Tuesday's Baltic Exchange settlement.
Shipbrokers said demand was streaming into the market, suggesting that a further rise could be possible.
'There is a fair bit of inquiries coming into the market and this will certainly give the market a much needed boost,' a Singapore-based shipbroker said.
A total of 14 VLCC inquiries, or 28 million barrels, was seen on the market yesterday, while a total of 12 provisional bookings had been made to move heavy oil from the Middle East to Asia.
A total 25 VLCCs were booked in the week ended Sept 14, up 20 per cent from the previous week, with 11 VLCCs set for discharge in Asia.
Bookings rose and gave rates a marginal lift, but overall levels remained about 23 per cent below its year-to-date average of W75.
Freight rates have suffered this year despite strong demand to transport oil, because of the surge in new ships entering the market.
More than 32 million deadweight tonnes of new tanker tonnage are expected to be delivered into the market this year.
Shipbrokers were also not too optimistic that Opec's decision to add 500,000 barrels per day of oil onto the market was sufficient to boost rates.
'That's really just about an aframax a day, or for every two cargoes you get one VLCC booked, that's hardly going to revive sagging rates,' a shipbroker said.
Aframax tanker rates for vessels plying between Singapore and China's southern fuel oil port of Huangpu were valued at US$650,000, about 30 per cent higher from levels seen the previous week.
Rates have picked up on a seasonal increase in lightering operations in the United States.
Rates for VLCCs on the benchmark Gulf-to-Japan route edged up to W55 points, about five points above week-ago levels and some six points higher than Tuesday's Baltic Exchange settlement.
Shipbrokers said demand was streaming into the market, suggesting that a further rise could be possible.
'There is a fair bit of inquiries coming into the market and this will certainly give the market a much needed boost,' a Singapore-based shipbroker said.
A total of 14 VLCC inquiries, or 28 million barrels, was seen on the market yesterday, while a total of 12 provisional bookings had been made to move heavy oil from the Middle East to Asia.
A total 25 VLCCs were booked in the week ended Sept 14, up 20 per cent from the previous week, with 11 VLCCs set for discharge in Asia.
Bookings rose and gave rates a marginal lift, but overall levels remained about 23 per cent below its year-to-date average of W75.
Freight rates have suffered this year despite strong demand to transport oil, because of the surge in new ships entering the market.
More than 32 million deadweight tonnes of new tanker tonnage are expected to be delivered into the market this year.
Shipbrokers were also not too optimistic that Opec's decision to add 500,000 barrels per day of oil onto the market was sufficient to boost rates.
'That's really just about an aframax a day, or for every two cargoes you get one VLCC booked, that's hardly going to revive sagging rates,' a shipbroker said.
Aframax tanker rates for vessels plying between Singapore and China's southern fuel oil port of Huangpu were valued at US$650,000, about 30 per cent higher from levels seen the previous week.
Rates have picked up on a seasonal increase in lightering operations in the United States.