Tanker: Firm demand persists as geopolitical friction develops
The crude tanker market eased modestly week on week, with Aframax and suezmax rates correcting after a strong run, while VLCC activity remained firm on Middle East cargoes moving East. Despite the pullback, earnings across all three crude segments remain at historically healthy levels, and weather disruption in the Mediterranean and North Atlantic continues to delay voyages and tighten effective supply. The market is consolidating at elevated levels rather than reversing, with geopolitical friction and reshaped trade flows still providing structural support.

LPG / VLGC: Segment strengthens further with consecutive weekly gains
VLGC (LPG) strength remains the standout development this week, with average earnings now above $80,000 per day following consecutive weekly gains. Activity in the Atlantic basin has been particularly firm, pulling the East along and reinforcing positive sentiment across the segment. One-year charter levels are holding near $47,000 per day, and recent multi-year fixtures confirm that charterers are willing to secure forward exposure at attractive levels, underscoring confidence in structural LPG trade growth.

PCTC: Chinese vehicle exports underpin strong utilisation
The PCTC market continues to show resilience, with one-year charter levels around $47,500 per day and owners reporting a stronger than expected start to the year. Solid contract coverage and steady vehicle export flows are supporting earnings stability, even as broader trade uncertainty remains present in the background.

Geopolitical: Sanctions on Russia and Iran increase global floating storage
Sanctions remain a key driver of tanker market dynamics, with the US adding 14 vessels linked to Iranian exports to its sanctions list and the EU considering stricter measures on Russian oil. Floating storage of Russian and Iranian crude has risen sharply to around 58 million barrels from just 6 million early last year, tightening mainstream supply and contributing to firmer rates. It has become increasingly difficult to sell and offload Russian crude, as India, one of its major buyers, is progressively replacing Russian barrels with crude imports from the United States under a new bilateral agreement between the two countries.