LONDON (Dow Jones)–The shipping costs for Very Large Crude Carriers, or VLCCs, traveling from the Arabian Gulf soared this week, supported by a tight market and strong seasonal demand from Asia, ship brokers told Dow Jones Newswires Thursday.
Freight rates for tankers traveling from the region rose 10%-14% from Wednesday to Thursday, depending on their destination, according to data from Riverlake Research & Consulting.
“There are very few ships for end November positions,” said one shipbroker. World Scale 60 is in sight, compared to rates in the mid to high 40s last week, he added.
World Scale is an index against which freight rates are based.
By Sarah Kent and Neena Rai, Dow Jones Newswires