As the clean Medium Range tanker market enters the fourth quarter, it faces a landscape marked by changing dynamics in the wake of Russia’s diesel export ban easing and an evolving preference for local runs in the Americas. Panama Canal restrictions further complicate the picture, with heightened volatility anticipated in the seasonally strong final quarter of the year, as reported by Spglobal.
- The easing of Russia’s diesel export ban and shifting market dynamics create uncertainty in clean Medium Range tanker trade.
- Local runs gain prominence in the Americas due to Panama Canal restrictions, impacting Medium Range freight volatility.
- Clean tanker markets expect increased volatility in Q4, with evolving trade flows and seasonal shifts driving fluctuations.
Russian Diesel Exports Resume Amid Market Shifts
At the start of Q4, Russia eases its diesel export ban, impacting global trade dynamics. Diesel exports to Brazil could rise, while the US Gulf Coast to Brazil route faces changes. The lifting of the ban may reverse higher freight rates seen during the export restrictions.
Local Runs Gain Market Share in the Americas
In September, the preference for short-haul voyages in the Americas prompts increased market share for local Medium Range (MR) runs. Wait times at the Panama Canal contribute to this shift, as drought conditions impact water levels at Gatun Lake. MR freight volatility cycles decrease, offering insights into market dynamics.
Panama Canal Restrictions Tighten Transit Flows
The Panama Canal Authority reduces daily transits, impacting clean tanker wait times and market dynamics. Shipowners adapt to these restrictions by repositioning tonnage, affecting routes like the US Gulf Coast-Chile. Firm freight levels are expected in the Americas clean tanker market during Q4.
Anticipating Winter Volatility in the Clean Tanker Market
As the Northern Hemisphere transitions into the winter season, the clean tanker market anticipates heightened volatility. Clean tanker ton-mile demand has risen due to shifting trade flows, particularly in Europe. The preference for short-haul runs in the Americas contributes to price fluctuations as the year progresses.
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Source:spglobal