VLCC rates are far from satisfying to Frontline

The crude oil carriers' downturn has become symptomatic of the overall tanker sector. Speaking to ShippingWatch, Frontline CEO Robert Hvide Macleod puts a number on how high VLCC rates will have to increase in order to recreate a healthy market – and it is far from the current level.

BY TOMAS KRISTIANSEN

Published: 24.08.18 at 11:05

Rates for the major supertankers are currently far from a level that the shipping companies can describe as satisfactory. VLCC rates and suezmax rates have thus far been so low that major players such as Frontline and Euronav have reported big deficits for the first six months, and the immediate prospects do not necessarily look much better.

Most recently, Frontline published a deficit of USD 36.5 million for the first six months of the year against a profit of USD 7.6 million in the first half of 2017. Rates for all the company's segments, VLCC, suezmax and LR-2, decreased, most notably for VLCCs, where the average rates came to USD 13,3000 per day against USD 22,400 in the first half of 2017.

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