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WAF-East VLCC rates highest since early March on Persian Gulf strength

Time：2014-06-27 Browse：52 Author：RISINGSUN

VLCC freight rates on the West Africa-Far East route, basis 260,000 mt, reached the highest level since early March on Wednesday, in response to a surge of activity in the Persian Gulf market.

Rates on the route rose Worldscale 2 to be assessed at w50, equating to $20.21/mt, the highest since $20.61/mt on March 5.

Sources said that despite the fact the WAF market was largely untested this week, rates would have to be moving up on the back of significantly higher rates for Persian Gulf-East voyages.

WAF VLCC freight rates traditionally follow Persian Gulf rates due to the higher volumes of cargoes coming from the Gulf and the fact that Eastern ballasters have to decide whether to pick up Persian Gulf or WAF cargoes.

“Everyone has been watching the PG,” said a shipowner Thursday. “Because the PG has been so strong there will be less interest from Eastern ballasters in coming to WAF. This means the tonnage list in WAF will be a big tighter.”

A shipbroker said the next WAF-East fixture could be around w50-52.5, “but the WAF market does need testing.”