- VLCC market recovers from H2 2024 lows amid tighter tonnage, steady demand.
- Spike in CPC monthly cargo count supports growth in Suezmax segment.
In the first quarter of 2025, the West of Suez dirty tanker market experienced a notable increase in freight rates, primarily driven by heightened crude oil volumes from the Atlantic Basin and the Black Sea regions, reports Platts.
This uptick marks a significant recovery from the subdued performance observed in the previous quarter.
VLCC Market Dynamics
Very Large Crude Carriers (VLCCs) saw a rebound in demand, particularly for routes originating from West Africa to the Far East. This resurgence is attributed to increased crude exports from West African producers, aiming to meet the growing energy needs of Asian markets. The tightening of vessel availability further contributed to the upward pressure on freight rates in this segment.
Suezmax Market Trends
The Suezmax segment also experienced a surge in activity, especially for voyages from the Black Sea to the Mediterranean and beyond. The escalation in geopolitical tensions in the Black Sea region led to a reconfiguration of trade routes, with charterers seeking alternative sourcing options. This shift resulted in increased demand for Suezmax vessels, thereby boosting freight rates.
Aframax Market Observations
Aframax tankers benefited from the overall market bullishness, with heightened activity in the intra-Mediterranean routes. Seasonal factors, coupled with strategic stockpiling by refineries, contributed to the firming of rates in this class.
Outlook
Industry analysts anticipate that if current geopolitical and economic conditions persist, the momentum in the West of Suez dirty tanker market is likely to continue into the subsequent quarters. However, stakeholders remain vigilant, monitoring potential regulatory changes and geopolitical developments that could impact market dynamics.
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Source: Platts
