The global tanker market moved on a strong upward trajectory in July and August, with freight rates higher for key ship types due to geopolitical developments, reshuffles in trade flows and limited capacity supply.
Specifically, Suezmax, Aframax and VLCC tankers are recording significant increases, focusing on the Atlantic, the Mediterranean and the Middle East, while enhanced production by leading exporters and ultra-long-haul routes to Asia are keeping demand at high levels and creating a climate of optimism for further growth.
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Clarksons Securities estimated that Saudi Arabia’s crude exports could rise above 800,000 barrels per day, driven by higher production and lower domestic demand.
Carrying this volume would require around 20 VLCCs, or 1.5% of the global fleet, which could push daily revenues towards 63,000 dollars.
Meanwhile, increased production in the Atlantic, mainly from Brazil and Guyana, combined with a rare discount in Brent futures prices to Dubai benchmarks, is widening the arbitrage between West and East. This is expected to boost VLCC flows on ultra-long-haul routes from the Atlantic basin to Asia, keeping demand and freight rates high.
This dynamic demonstrates that the greatest opportunities for shipowners currently appear in Suezmax, Aframax and VLCC tankers, where demand and geoeconomic conditions are boosting freight rates.
