USGC VLCC Freight Jumps 26% on Week as Delays Trump Impact of Pandemic

US Gulf Coast VLCC freight jumped more than 26% over the past week as a combination of discharge delays at Chinese ports and an influx of charterer inquiries across all key global VLCC loading regions trumped the otherwise depressed freight environment due to the coronavirus pandemic.

Freight for the VLCC 270,000 mt USGC-China route was assessed July 9 at lump sum $6.75 million, jumping $650,000 on the day, and an increase of $1.4 million since July 2 when freight for the route reached the lowest level seen since July 26, 2019. An increase in Chinese crude imports led to significant delays at ports in the region. This gave shipowners the upper hand in negotiations as tonnage availability is not being replenished in a timely manner, with the majority of USGC-loading ships ballasting from Asia discharges…

View entirety: S&P Global Platts