VLCC charter rates have surged back into the six-figure range, exemplified by DHT Holdings securing a one-year time charter for the 2011-built vessel, DHT Redwood, at a rate of $105,000 per day. This is one of the highest rates disclosed during the current market uptick. The contract will commence in March 2026 with a prominent global energy company, highlighting the tightening conditions within the compliant VLCC segment.
The Redwood fixture accompanies two other notable one-year charters: the DHT Taiga at $94,000 per day and the DHT Opal at $90,000 per day. Collectively, these charters reflect a rapid strengthening in the market, driven by robust crude oil demand, extended trade routes, and heightened geopolitical risk premiums.
DHT’s fourth-quarter earnings commentary emphasized the structural support for the VLCC market, attributing its strength to the increasing need for compliant crude transportation amid geopolitical uncertainties. The company also noted a significant shift in fleet ownership dynamics, predicting that private “aggregators” could soon dominate a quarter of the compliant VLCC fleet, potentially affecting availability and pricing.
As of the first quarter of 2026, DHT has secured 76% of available VLCC spot days at $78,900 per day and 86% of total available days, factoring in both spot and time charter coverage. Meanwhile, rival Frontline has proactively locked in seven one-year charters at $76,900 per day, indicating a competitive environment as firms position themselves amid ongoing market volatility. DHT’s shares have surged nearly 60% year-to-date, signifying investor optimism for the sustainability of current rates.
Share it now
