VLCC freight rates on the Rotterdam to Singapore route, basis 270,000 mt, rose steeply to a more than one-and-half-year high Tuesday, with shipping sources continuing to report firmer sentiment on the route Wednesday.
The cost of sending 270,000 mt fuel oil cargoes from Rotterdam to Singapore on a VLCC rose $400,000 over the day to $5 million lump sum Tuesday, reaching the highest assessed since May 14, 2012 when the rate on the route was $5.3 million lump sum, according to Platts data.
On Wednesday, a few sources said the rates could move higher than $5 million lump sum on the Rotterdam-Singapore VLCC route due to firmer sentiment in the market.
While no ships were heard on subs on the route, a Frontline VLCC was heard on subjects to Shell loading in mid-December from Hound Point in the UK, to South Korea at $6.5 million lump sum.
The shipowner declined to comment on the details, and the charterer was not immediately available to comment.
Typically, there is around $1-1.5 million lump sum premium on the Hound Point-South Korea VLCC route over the Rotterdam-Singapore VLCC route.