In its final days, the Biden administration’s OFAC (Office of Foreign Assets Control) imposed sanctions on 155 tankers, primarily those linked to Russia. Simultaneously, Shandong Port Group in China, a key hub for refiners importing crude from sanctioned nations, prohibited sanctioned tankers from entering its ports, reports Gibsons.
Crude Oil
East:
- VLCCs: Busy week in the Arabian Gulf (AG), but freight rates remained stable. AG/China rates are around WS58, and AG/USG rates are around WS32.
- Suezmaxes: Steady inquiry, but rates are struggling. Expect potential improvement next week due to increased activity in the West. AG/East rates are firming.
- Aframaxes: Tight supply in the AG, with high rates offered for premium trades. Expect an overall rate increase.
West Africa:
- VLCCs: Steady week, but rates haven’t improved. Reduced eastern ballasters could lead to increased pressure on charterers if cargo flow improves. WAF/East rates are around WS59.5.
- Suezmaxes: Rates have firmed, with owners aiming for over WS100 next week.
Mediterranean:
- Suezmaxes: CPC rates have surged. Expect continued volatility and potential further increases. Libya/East rates are also expected to rise.
- Aframaxes: Rates remained stable initially, but a surge in Libyan activity absorbed available tonnage. Owners are optimistic about potential rate increases.
US Gulf/Latin America:
- VLCCs: Difficult week with limited activity, leading to potential rate pressure. Tariff uncertainty is affecting trade to China. USG/China rates are around $7.3 million, and Brazil/China rates are around WS57.5.
North Sea:
- Aframaxes: Stable market with rates around WS107.5. Some vessels are heading to the Mediterranean and Transatlantic markets.
Clean Products
East:
- LR2s: Strong momentum, with rates rising. Owners are aiming for $4 million for Westbound voyages. TC1 rates are also increasing.
- LR1s: Increased activity, with TC5 rates rising significantly, even for older vessels. Westbound rates are also improving.
- MRs: Rebounding rates despite a short cargo list. Tightening tonnage due to off-market activity. TC17 and TC12 rates are rising. Strong LR activity supports stable sentiment.
UK Continent:
- LRs: Tight tonnage due to short-haul ULSD demand, leading to stable to slightly increasing rates. TC2 remains slow.
- Handies: Strong demand driven by short-haul ULSD, leading to firmer rates. TC23 rates have increased, and further increases are expected.
Mediterranean:
- Handies: Volatile market with rates varying based on cargo and dates. Increased inquiry and tight tonnage led to rate increases towards the end of the week.
- MRs: Slow start, but rates have picked up due to rising TC2 rates and Med Nap stems. Med/TA rates have increased, and WAF rates are expected to follow.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Gibsons
