Concordia: Crude tanker rates spike, product to follow - Introduce

Tuesday, January 14, 2020 3:57 PM
"Crude tankers spiked to all-time high levels during Q4’19, with Suezmax rates reaching USD 160kpd for Suezmax vessels. While few fixtures were concluded at this level, Suezmax rates in Q4’19 have averaged ~USD 73kpd (up 339% q-o-q and 95% y-o-y), well above the CBE of ~USD 25kpd. MR tankers, while having a smaller upswing, were strong at ~USD 20kpd per day (up 99% q-o-q and up 84% y-o-y), above their CBE of ~USD 17kpd.

In our estimates, we have increased our expected CCOR Suezmax tanker Q4’19 realised rates to USD 43kpd (USD 40kpd) while keeping product tanker rates at USD 19kpd. CCOR rates are not adjusted to the reported market rates due to our taking bookings guidance into consideration and the one-off rate spike not being realised."

Link to commissioned research below.