Tanker Market Weekly Report Mixed Signals Across Global Segments As VLCCs Slide

By
Mfame Editor
-
14

The global tanker market in Week 30 (ending 25 July 2025) showed a mix of stability, moderate gains, and significant declines across vessel types and trade routes.

While the clean tanker segment remained largely steady with minor positive shifts in LR1 and MR rates, the crude sector—especially VLCCs and Suezmaxes—faced downward pressure due to vessel oversupply and weak cargo activity. Here’s a breakdown of the key trends across vessel classes.

Clean Tankers: LR2, LR1, MR and Handymax See Small Gains or Flat Markets

  • LR2 rates in the Middle East Gulf (MEG) stayed steady, with TC1 MEG/Japan in the high WS120s–low WS130s and TC20 MEG/UK-Continent around $3.7 million.

  • In the Mediterranean, LR2s for TC15 (Baltic description) were unchanged at $2.9 million for a second consecutive week.

  • LR1s also held firm. TC5 MEG/Japan inched up by 4 points to WS150, while westbound TC8 MEG/UK-Continent rose modestly to $3.02 million. UKC-West Africa (TC16) remained flat at WS111.

  • MRs in the MEG stayed around WS226–227, equating to about $23,000/day TCE.

  • On the UK-Continent, MR rates fluctuated slightly (WS120 to WS129), briefly pushing TCEs above $10,000/day.

  • In the US Gulf, MR freight jumped. TC14 rose 35 points to WS146.79, and Caribbean-bound TC21 spiked 33% to $750,000. The Atlantic MR Basket TCE surged from $18,000 to $24,700.

  • Handymax rates increased modestly. Mediterranean TC6 rose to WS178.33, while UKC TC23 improved to WS156.39.

VLCC Market: Sharp Rate Decline Driven by Vessel Oversupply

  • The VLCC sector saw noticeable rate drops:

    • TD3C MEG-China fell 7 points to WS46.15 (TCE: ~$25,493/day).

    • TD15 West Africa-China dropped 5 points to WS48.5 (TCE: ~$28,863/day).

    • TD22 US Gulf-China lost over $500K, assessed at $7.03 million (TCE: ~$33,680/day).

  • Market sentiment remains bearish due to an oversupply of tonnage and low chartering demand, with further rate reductions possible.

Suezmax Sector: West Africa Softens While Black Sea and ME Hold Firm

  • The West Africa-Europe route (TD20) fell over 12 points to WS75–77.5, with daily TCE around $27,000.

  • Guyana-Europe (TD27) dipped slightly to WS77.

  • Black Sea-Med (TD6) remained unchanged at WS96 (TCE: ~$31,300).

  • In the MEG, the TD23 MEG-Mediterranean route via Suez Canal was steady at WS96.

Aframax: Atlantic Routes Weaken, North Sea and Med Mixed

  • North Sea TD7 (Cross-UKC) stayed flat at WS115 (TCE: ~$25,130/day).

  • Mediterranean TD19 (Ceyhan-Lavera) declined 7 points to WS130 (TCE: ~$26,200/day).

  • Atlantic Aframax routes fell further:

    • TD26 Mexico/US Gulf and TD9 Covenas/US Gulf each lost 13 points, TCEs at ~$15,000–16,000/day.

    • TD25 US Gulf/UKC slipped 3.5 points to WS120 (TCE: ~$23,600/day).

Week 30 displayed contrasting movements across tanker classes. The clean segment stayed broadly resilient with small rate increases in LR1s, MRs, and Handymaxes—especially in the US Gulf and Med. However, the crude market, particularly VLCCs and West African Suezmaxes, suffered significant rate erosion amid weak demand and ample vessel supply. Market participants continue to watch closely for cargo activity shifts and fleet movements to gauge rate recovery prospects in the weeks ahead.

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Source: BALTIC EXCHANGE