The crude tanker market delivered mixed results across vessel classes. VLCCs saw a quiet Atlantic market initially as increased vessel availability and limited cargoes pressured rates, although owners later resisted further declines and maintained relatively stable levels on Brazil and West Africa eastbound routes. Strong earnings in the Middle East continued to underpin sentiment, but security risks in the Red Sea and uncertainty around the Strait of Hormuz raised questions about the sustainability of these elevated returns.
Suezmax markets weakened early in the week as excess tonnage weighed on WAFR rates, while CPC routes continued to command significant premiums due to Black Sea security concerns. By week’s end, Atlantic rates appeared to have found a floor, supported by renewed chartering interest and a tightening US Gulf market. Mediterranean Aframax rates remained under pressure from abundant vessel supply despite improved activity, while North Sea Aframax rates softened as limited enquiry and growing tonnage availability shifted bargaining power towards charterers.
Product tanker markets were heavily influenced by geopolitical uncertainty. AG LR2 trading experienced repeated fixture failures caused by security concerns and elevated freight expectations, though Indian Ocean loading alternatives strengthened modestly. LR1 activity remained constrained, with most business concentrated in a few cargoes and market direction tied closely to developments in the Middle East. In contrast, North Asian LR markets improved as rising Chinese exports generated additional cargo opportunities and firmer sentiment. The Mediterranean MR market remained subdued, with limited cargo activity pushing rates lower and leaving sentiment bearish. The Handysize market there was similarly quiet; the western Mediterranean held relatively stable thanks to tighter vessel supply, while central and eastern areas faced increasing pressure from growing tonnage availability and limited fresh demand.