Tanker Income Inequality

15 April 2016: Typically, the Suezmax and VLCC markets behave somewhat similarly over a period of time. However, in Q1 of 2016 we have experienced a significant divergence in rates between the two segments. The average VLCC rate on the benchmark Arabian Gulf to Japan route was $56,900 per day in the first quarter of 2016 compared to $59,100/day in the same period of 2015. This represents a modest reduction of 4% year over year. Suezmaxes, on the other hand, earned only $26,300/day in the first quarter of 2016 on the representative West Africa – Rotterdam route compared to $41,150/day in Q1 of 2015, a much more significant discount of 36%. What are the reasons that these segments performed so differently? Download here
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