Dirty and clean tanker rates on key Asian routes are expected to slide this week, as the amount of available tonnage outpaces increased chartering activity with people returning from holiday, ship brokers said.

Charter rates for West Asia and Gulf of West Africa, the two main very large crude carrier (VLCC) trades, are expected to fall.

"It's a question of how much," said one Singapore-based broker.

Last weekend, the latest fixture for a VLCC voyage from West Asia to Asia was done at W55, a dip of five worldscale points as compared to the previous day's benchmark rate of W60 from West Asia to Japan, the ship broker said. The difference is comparable to a $ 7,000 drop in daily earnings.

Charter rates for VLCCs sailing from West Africa to China are also likely to drop, after having risen by 1 point since December 24 to close at W60.5 on January 2.

A report published by a team led by Mr Michael Beer, Vice-President, Asia-Pacific transportation research at Citi Research, suggests that VLCC earnings will remain under pressure all of this year.

According to Mr Beer, the strong rebound in rates that started in November is not likely to continue into 2014. "¦because the growth of VLCCs' key routes, which supported the recent rebound, is expected to soften," he said.

Fixtures are expected to pick up over the next two to three weeks, ahead of the Chinese New Year, as around 70 cargoes remain to be fixed in charterers' January programmes for West Asia to Japan, brokers said.

Rates for 80,000-tonne Aframax tankers from South-East Asia to East Coast Australia are seen continuing to fall. According to brokers, Aframax rates fell from W110 on December 24 to W109 on January 2. According to a Singapore-based Aframax broker, there is significant tonnage.

The surge in rates for medium range tankers travelling to Japan from Singapore is unlikely to continue, with rates going from W115 on December 24 to W121 on January 2.

Some kind of correction in rates is definitely expected, brokers said. (Source: Bloomberg)