The global tanker market experienced downward pressure this week, with all major crude segments VLCC, Suezmax and Aframax showing signs of softening. Limited activity, longer tonnage lists, and selective chartering have contributed to easing rates across key routes, despite owners’ efforts to maintain last-done levels.
VLCC Market Softens but Owners Hold Firm
VLCC rates have slipped from the high W130s to low–mid W120s on the MEG/East routes, even as much of the fixing activity remains discreet. Despite the quieter environment, owners have shown discipline, resisting further declines and attempting to push rates slightly higher when opportunities arise.
Tonnage remains balanced and mainly in the hands of a few key players, helping prevent a sharper fall. Baltic assessments also stayed largely unchanged, suggesting broader market expectations remain aligned.
In the Atlantic, activity remains muted. A fresh Brazil cargo was quickly fixed at W107.5 about 2.5 points down while softening Suezmax rates are giving charterers more flexibility on crude movement.
Suezmax and Aframax Segments Trend Lower Amid Longer Lists
Suezmax: Pressure Builds on Both Sides of the Atlantic
Suezmax rates continued to ease, with ECM/Spain reported at W105 for prompt dates reflecting shorter waiting times rather than broader weakness. Another prompt replacement fixed at W115 points toward W110 being a realistic level for natural dates.
Vessels opening in the UK Continent are likely to gravitate toward West Africa, where TCE parity is at W127.5 for TD20—well below recent fixtures.
In the East, an MEG/WCI stem attracted eight offers and went on subs at W165, but the long tonnage list is expected to drag rates lower soon.
Aframax: Steady but Sideways in North Sea and Mediterranean
In the North Sea, Afra rates have held steady with limited cargo flow. Larger vessels have absorbed volume for the second decade, reducing available stems for Aframaxes. Activity is expected to remain stable through mid-December, with more cargo expected in the latter half.
The Mediterranean also shows a balanced position list and sideways movement. With modest activity and natural fixing windows moving toward mid-month, sentiment is flat. North Africa and CPC programs are already working well into the third decade.
Despite owners’ resistance, tanker markets across the VLCC, Suezmax and Aframax sectors are showing clear signs of softening due to longer tonnage lists and reduced activity. While some routes remain steady, the overall sentiment leans bearish heading into the second half of December. Unless fresh inquiry picks up or weather disruptions tighten supply, rates may continue to face downward pressure in the coming days.
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Source: Fearnleys
