Average spot rates for older very large crude carriers climbed to $83,300 per day while rates for newer and more fuel-efficient VLCCs hit $91,000 per day. VLCCs are super-massive tankers that carry 2 million barrels of oil.
Consequently, leading commodity shipping stocks have been reversing earlier gains: over the past 30 days, Tsakos Energy Navigation shares have declined 9.7%; Teekay Tankers -12.2%; Nordic American Tankers -11.9%, Frontline -4.0%, Euronav NV -11.3% and International Seaways -6.7%.But the tanker bulls have refused to give up, and insist there’s plenty of light at the end of what they consider a short tunnel.
Interestingly, it’s not just Wall Street punters that are buying the bullish narrative but ship owners themselves, with some reportedly pulling their older tankers from second-hand markets in . The experts are also predicting stronger growth in the coming year: