- VLCC earnings weakened further, slipping below $100,000/day, while Suezmax and Aframax segments posted gains.
- Suezmax rates were lifted by strong Atlantic demand and tight tonnage, especially in West Africa.
- Holiday slowdown is expected, but regional imbalances continue to shape short-term volatility.
VLCC freight remained under pressure throughout the week, with average TCE earnings falling 12% week-on-week to around $95,900/day. Chartering activity was muted in the Middle East as charterers adopted a wait-and-see approach, while Brazilian cargoes offered only limited support in the Atlantic. A steady build-up of available tonnage continued to outweigh demand, strengthening charterers’ negotiating position.
Suezmax: Atlantic Strength Drives Gains
The Suezmax sector delivered a strong performance, with average earnings rising 13% week-on-week to about $86,000/day. Robust West Africa and Americas-to-Europe demand, combined with limited vessel availability, pushed rates higher. In the Black Sea, ongoing Russia-Ukraine hostilities increased risk premiums, further tightening compliant tonnage and supporting owners’ leverage.
Aframax: US Gulf Leads the Market
Aframax earnings climbed 6.6% week-on-week to roughly $61,700/day, driven mainly by firm conditions in the US Gulf. Transatlantic and regional demand remained healthy, while the North Sea stayed broadly balanced. In the Mediterranean, momentum eased as December cargoes were largely covered, and January enquiries remained limited.
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Source – Intermodal
