The surge in the VLCC market is likely to benefit smaller crude carriers with a “trickle-down effect” as charterers look for alternatives in the tight market, said shipbroker Lorentzen & Co.
The Baltic Exchange reported that average time charter equivalent rates for VLCCs have nearly doubled this week to reach $71,234 on Thursday.
Lorentzen chief shipping analyst Nicolai Hansteen said the “ferocious upturn” in the market was driven by demand from China.
