The shift to the updated 2024 Worldscale flat rates is underway in the West of Suez region, impacting the dirty tanker market. Sinochem's announcement of the first Very Large Crude Carrier (VLCC) fixture under the new rates for a West Africa-Far East voyage reflects the ongoing transition, with rates rising significantly. Despite traditional delays in the VLCC and Suezmax markets' adoption of new rates, the firming tanker market is pushing charterers to pay higher Worldscale multipliers. The surge in freight rates, attributed to a booming US Gulf market, increased inquiry levels, and a tight tonnage situation, is further evidenced by rising rates on the WAF-East route. The VLCC segment, in particular, is experiencing unprecedented activity, with high cargo demand reported in various regions, contributing to an overall bullish market sentiment.

SOURCE:HELLENIC SHIPPING NEWS