Tanker Market: Mixed Performance During September
QThe tanker market showed mixed results over the past month, OPEC said in its latest monthly report. Gross tanker freight rates showed mixed movements in September. VLCC spot freight rates surged due to increased outflows from the Middle East via the available tonnage list. Spot freight rates on the Middle East-East route jumped 56%, and similar increases were also seen in fares on the Middle East-West route.
Activity in the Suezmax market was quieter, although balanced tonnage kept the market strong. Fares on the West Africa Gulf Coast-to-US (USGC) route edged up 3%. Aframax spot freight rates experienced mixed movements as disruption limited tonnage demand in the Mediterranean. Cross-Med spot shipping rates down 6%, ma’am. On the other hand, fares for the Indonesia-East route increased by 16%, you know, Ma.
In the clean tanker market, spot freight rates also vary. Some improvement was seen in short-term freight rates, while refinery maintenance limited net tonnage demand in the Middle East. Fares for the Middle East-East route fell by 10% ma’am, while fares for the Singapore-East route rose 5% ma’am.
Dirty tanker transportation rates
Very large crude oil carriers (VLCCs)
VLCC spot freight rates showed strong performance in September, as continued cargo flows reduced tanker availability. On average, VLCC spot shipping rates increased 55%, and were up 58% compared to the same month last year. On the Middle East-East route, the average fare reached WS89 in September, representing a 56% jump from the previous month. Rates are 68% higher, yoy. Likewise, spot freight rates on the Middle East-West route increased 56% to an average of WS53. Fares also jumped 56% compared to the same month in 2024. On the West-East Africa route, spot freight rates also rose 48%, to an average of WS86. Compared to the same month in 2024, the rate is 51% higher.
Suezmax
Spot freight rates for Suezmax vessels on average showed a more subdued performance in September following last month’s surge, up 5%, ma’am. Compared with the same month last year, average rates for ship classes increased by 43%.
On the West Africa to USGC route, spot freight rates in September averaged WS104, representing an increase of 3%, ma’am. Compared with the same month in 2024, spot fares on the route increased by 41%. Fares on the USGC-to-Europe route rose 7%, ma’am, to an average of WS94. Compared to the same month in 2024, the rate is 47% higher.
Aframax
Aframax spot freight rates recorded the only decline in September among monitored classes, weighed down by weak performance around the Mediterranean and Atlantic. The average Aframax rate fell by 1%, Ma. Compared with the same month last year, fares for ship classes rose 23% on average. The Indonesia-East route recorded positive performance, ma’am, up 16% to WS126. However, yoy, fares on this route fell by 7%.
Spot freight rates on the Caribbean-to-US (USEC) East Coast route fell 4%, to average WS154. Compared with the same month last year, the rate is still 66% higher. Spot freight rates around the Mediterranean also decreased. Medical cross rates fell 6%, ma’am, to an average of WS136. Yoy, spot rates on this route increased by 23%. Fares on the Med-to-Northwest Europe (NWE) route fell by 4%, to an average of WS131. Compared with the same month in 2024, the rate is 24% higher.
Clean tanker transportation rates
Clean spot transportation rates show mixed performance across regions, although the average tends to be lower, ma’am. Interest rates in East Suez fell by an average of 2%, while interest rates in West Suez were generally flat. Compared to the previous year, East Suez rates increased by 5% and West Suez rates by an average of 16%.
Fares on the Middle East-East route saw the biggest decline, down 10% to an average of WS147. Compared to September 2024, the rate is 3% lower. In contrast, clean spot freight rates on the Singapore-East short-haul route rose 5% to an average of WS168. Yoy, fares on this route increased by 14%.
In the Atlantic Basin, cleanliness ratings on the NWE-to-USEC route averaged WS121, representing an increase of 9%, mom, and 1%, yoy. Medical cross rates fell slightly, averaging WS147, representing a 3% decline, ma’am. Fares on the Med-to-NWE route averaged WS157, also representing a 3% reduction. Yoy, spot transportation rates on both routes increased by around 24%.
Nikos Roussanoglou, Worldwide Hellenic Shipping News
