VLCC rates skyrocketed to the highest level in the year

- Feb 20, 2020-

Following the attack on Saudi Aramco's oil field facilities in mid September, the recent international crude oil transportation price has seen another big rise.            

On October 8, the Baltic crude oil price index (BDTI) reached 1355 points, up 35.8% on a month on day basis, up 57.9% from the same period last year, reaching the highest level in the year. On the same day, VLCC (VLCC) TCE VLCC equivalent time charter rates for the Middle East China route were reported at US $113047 / day, up 77% on a 7-day basis, up 193.3% from the same period last year, hitting the highest price in the year.            

The reporter of "daily economic news" noted that due to the skyrocketing of VLCC freight rates, almost half of all the revenue generated by the tanker transportation business can be said to be "full of money". According to the estimation of Huatai Securities, for every 5000 US dollars / day increase in VLCC freight, the net profit of CMB's parent company will increase by 640 million yuan.