The percentage of newly delivered very large crude carriers (VLCCs) transporting refined products on their maiden voyage has fallen to 33pc so far this year from 46pc last year, as higher crude freight rates have lessened shipowner interest initially trading their newbuild VLCCs on the clean market.
Of the 24 VLCCs delivered during the first half of this year, eight carried refined products for their first shipment. The cargoes totaled 1.4mn metric tonnes, which is equivalent to roughly 38 medium range (MR) clean tanker cargoes or 24 long range 1 (LR1) clean tanker cargoes.
Newly delivered VLCCs often load clean products in the Asia-Pacific, where the vast majority of vessels are built, or ballast from the shipyard to the Mideast Gulf to load a clean cargo. This occurs more frequently when dirty tanker demand is low. These clean-carrying VLCCs then typically "dirty up" and begin transporting crude after their initial voyages.
In all of 2021, 16 of the 35 newly delivered VLCCs transported refined product cargoes on their maiden voyage. The cargoes totaled 4.4mn t of, equivalent to roughly 117 MR tanker cargoes or 60 LR1 tanker cargoes.
The falling proportion of newbuild VLCCs trading clean so far this year has been driven by higher crude-carrying freight rates for the segment, especially since late May, when rates began rallying toward multi-year highs on the back of increased Chinese crude import demand.
So far this year, the Mideast Gulf to Asia-Pacific VLCC rate averaged $9.45/t, up from $6.41/t during the same period in 2021. Since 23 May, the rate has risen by 43pc to $12.65/t, just 2pc below the year-to-date high of $12.87/t reached on 1 March, which at the time was a 20-month high.
Time charter equivalent earnings on the Mideast Gulf to Asia-Pacific route for a scrubber-fitted VLCC are at $28,700/d, up from $4,200/d a year ago, according to a shipbroker.
