Israeli attacks on Iran see VLCC forward rates climb

VLCC freight forward agreements (FFAs) are ticking up following Israel’s continuing attacks on Iran.

Analysts said on Friday that current FFA rates on the Middle East Gulf to China route imply VLCC earnings could jump over $40,000 per day in July.

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“Tankers are the most sensitive segment within shipping to an escalation of hostilities in the Middle East, and, while spot rates have not shown any meaningful changes, the forward markets have risen,” Jefferies’ Omar Nokta said.