Tanker Rates Slide as Ballasters Flood West Africa Market

Crude tanker rates for voyages loading in West Africa have slid sharply from multi-decade highs reached during the early days of the Russia-Ukraine war, as an influx of 'ballaster' vessels has increased supply in the region, according to industry sources. Suezmax and Very Large Crude Carrier (VLCC) rates for West African loadings have fallen since hitting lofty levels in the first week of the conflict, which effectively closed the Strait of Hormuz and disrupted typical crude trade flows. 'The market has softened quite a bit,' a shipbroker told Hellenic Shipping News. 'There's been an influx of ballasters, especially VLCCs, coming into the West Africa market.' Ballasters refer to tankers repositioning from other regions to take advantage of higher freight rates in West Africa. This increased vessel availability has put downward pressure on rates, which had spiked due to the loss of Russian crude exports. The Baltic Exchange's Suezmax index for West Africa-UK Continent voyages was assessed at $33.32 per metric ton on Wednesday, down from a high of $52.86 per ton in early March. Similarly, VLCC rates for the same route have fallen to $6.40 per metric ton, from a peak of $13.68 per ton. While the tanker market remains volatile, the influx of ballasters suggests owners are closely monitoring the situation and moving assets to capitalize on the most lucrative trade routes, according to industry analysts.