The Rotterdam-Singapore route was assessed down $150,000 at $5.25 million lump sum Tuesday ($19.44/mt), and was pegged at the same level Wednesday by shipping sources. It was last lower on January 9 at $5 million ($18.52/mt), Platts data shows.
The Forties crude oil arbitrage is expected to be quieter for March-loading barrels compared to February, with so far only one VLCC fixture reported, compared to three that were booked for February departure dates.
South Korean refinery maintenance in Q2 has been identified by traders as being behind the waning interest in North Sea barrels.
On the vessel supply side, Northwest Europe was becoming more of a charterer`s market, said one broker.
"There is lackluster activity in the Caribbean to the Far East VLCC route, which gets more tonnage in the Atlantic ocean...there are more ships for the natural loading dates in Northwest Europe compared to where we were a few weeks ago," the broker said.
The longer voyage to South Korea was also softening, said brokers.
"The rate on Hound Point to the Far East is range-bound within $6.25-$6.50 million lump sum," a shipbroker said. Last week the rate was $7 million lump sum on the route.
Typically, VLCC freight rates on the Hound Point to South Korea route are $1 million to $1.25 million lump sum higher than the freight rates on the Rotterdam-Singapore VLCC route. This includes port costs, and the cost of ballasting a VLCC from the Atlantic Ocean, according to shipping sources.