Tankers’ long-term prospects are positive

Spot market rates for all tanker categories are currently at historic highs.

Large tankers that can carry up to 2 million barrels of crude, the VLCCs, are recording the highest profits, surpassing 500,000 dollars per day, for voyages from the Middle East to Asia.

Other tanker categories are also moving at high levels. For instance, Suezmaxes have exceeded 300,000 dollars per day, while LR2s on many routes are consistently moving above 100,000 dollars per day.

In the debate over whether the tanker market can remain at relatively high levels in the long term, Breakwave Advisors believe that this is possible.

The tanker market is emerging from a prolonged period of weak freight rates, as fleet growth slows, while demand for oil remains high, in line with the course of the global economy.

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“The historically low order book for new ships, combined with changing trade flows, is expected to continue to support increased volatility in spot freight rates.

At the same time, ongoing geopolitical instability is expected to keep freight rates at relatively high levels in the medium to long term.”