The global tanker market has shown notable activity across all major segments this week, with bullish signs in the VLCC and Suezmax markets, while the Aframax sector remains relatively steady.
VLCC
The VLCC market kicked off the week with high energy. A wave of cargoes hit the market early Monday, possibly triggered by OPEC+’s weekend decision to extend production increases. Rates responded quickly, climbing to WS 47 on the MEG–East route by the end of the day.
The upward trend continued into Tuesday and Wednesday, with a healthy flow of cargoes and a rapidly thinning position list. Activity in the Atlantic basin is also ramping up, drawing more vessels westward and tightening supply further in the East.
Recent Fixes:
- MEG/Korea: WS 48 (ex dry dock vessel)
- MEG/Singapore: WS 53.5 (standard unit)
With rates inching higher, it wouldn’t be surprising to see TD3C test the WS 55 level soon. Meanwhile, geopolitical developments — including tariff-related uncertainties under President Trump and potential shifts in Indian oil sourcing due to Russian sanctions — may benefit the VLCC segment if India pivots toward more conventional crude imports.
Suezmax
The Suezmax market has seen a dramatic upswing, particularly in West Africa and the CPC region. A surge in replacement requirements, difficult cargo options, and a lack of available tonnage have led to sharp rate increases.
Charterers have reportedly explored using VLCCs for UK–Continent Mediterranean (UKCM) runs, but so far, without success. Even so, the VLCC market’s rebound appears more gradual compared to the steep gains seen in the Suezmax segment. In the East, limited supply and lifted rate caps are further helping owners secure better deals, with VLCCs absorbing much of the volume.
Aframax
North Sea: Stable for Now Despite US Pull
Crude stems up to mid-August are largely covered in the North Sea, with most fixtures relying on relets and occasional Suezmaxes out of WCN. Rates are holding steady in the WS 115–117.50 range.
Notably, many vessels ballasted away from the region toward the US in late July and early August. This was in response to a sharp rise in US freight levels — up 50 points over the past week — although upcoming chartering activity is expected to test whether these levels can be sustained.
The near-term outlook for the next fixing window in the North Sea remains balanced.
Mediterranean: Quiet, Balanced, and Sideways
The Mediterranean Aframax market has taken a quieter tone this week. Most activity is happening behind the scenes, with charterers attempting to push rates below last-done levels. The tonnage list remains balanced, and future rate direction will largely depend on how demand evolves over the coming days.
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Source: Fearnleys
