Middle East Gulf-China VLCC index in ‘freefall’, plunging 39% in two days
- TD3C index fell to $313,140 per day on Thursday, down $201,142 per day or 39% vs Tuesday to the lowest reading since the Hormuz crisis began
- A VLCC is on subjects at Worldscale 310 after a previous fixture at W410 failed; W410 was reportedly ‘unworkable’ and reduced rate is expected to attract more traders
- TD3C assessments are heavily influenced by risk premium of transiting Hormuz; peace framework should lower premium but Thursday’s attack on Ever Lovely could raise it again
The drop in the TD3C Middle East Gulf-China VLCC index was described by one broker as ‘brutal’ and by an analyst as a ‘violently lower’ repricing amid a collapse. The TD3C still has plenty of room to fall further if it closes the gap with Atlantic rates
