The global tanker market continues to navigate through choppy waters, with varying degrees of activity and rate movement across vessel classes.
The VLCC segment remains sluggish with rates largely flat, while Suezmaxes grapple with oversupply and declining sentiment.
The Aframax segment offers a slightly more optimistic picture in the Mediterranean, although the North Sea remains subdued. Market participants are cautiously watching for signs of a rebound amid mounting tonnage and muted demand.
VLCC and Suezmax Segments Under Pressure
The VLCC market remains in a lethargic state, particularly out of the Middle East Gulf (MEG), where owners’ resistance is the only force holding rates steady. The Atlantic Basin shows mild promise, with some tonnage cleared and potential upside supported by ongoing U.S. export activity, Brazilian flows, and West African cargoes. However, this has not yet translated into upward rate momentum, with the MEG/Japan and MEG/Singapore routes flat at WS 44–45, and WAF/FEAST slightly down at WS 47.5.
Suezmaxes, meanwhile, are under broader pressure globally. In the West, oversupply and falling rates dominate sentiment. In West Africa, July dates are entering the market, but with no urgency from charterers, the benchmark TD20 could soon settle near WS 77.5. The US Gulf sees prompt vessels accumulating, with rates falling 5 points amid weak fundamentals and competition from VLCCs and Aframaxes. In the East, a tighter tonnage list has not spurred optimism as VLCC availability continues to cap Suezmax opportunities.
Aframax Market Mixed: North Soft, Med Active
The North Sea Aframax market remains lackluster with limited fixtures and a downward tone. Many vessels are leaving the area due to extended waiting times and unclear ballast opportunities. July loading programs offer a ray of hope, with Teesport coming back online after maintenance, but immediate prospects remain soft.
In contrast, the Mediterranean Aframax sector is more active. A wave of cargoes entering the market has cleared out some of the tonnage overhang. While rates have undergone a small correction, they may have bottomed out. Continued demand could attract North Sea ballasters and relets, suggesting potential for a sideways movement in rates in the short term.
Tanker markets remain uneven, with VLCCs stuck in neutral, Suezmaxes under notable pressure, and Aframaxes offering localized signs of recovery. Rate softness and fleet oversupply continue to weigh on sentiment across segments. Unless stronger demand or a significant tonnage clear-out materializes, meaningful recovery remains elusive—though some regional dynamics may offer short-term opportunities for select vessel classes.
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Source: Fearnleys
