Tanker: Aframax segment experiences strongest week in years
The tanker market remained firm overall, led by an exceptional week for the Aframax segment, where earnings surged across key routes amid tight tonnage availability and weather-related disruption. North Sea, Mediterranean and US Gulf markets all saw strong fixing activity, pushing average Aframax earnings to levels not seen in years. While VLCC and Suezmax earnings eased from last week’s peaks, they remain elevated by historical standards at around $100,000 per day, supported by ongoing sanctions-related inefficiencies, longer tonne-mile demand and limited prompt supply.

LPG/VLGC: Softer sentiment as earnings ease week on week
The VLGC market experienced a softer week, with limited activity in the West and bearish sentiment weighing on rates. Houston-Chiba earnings declined week on week, reflecting reduced cargo flow and a lack of fresh fixtures, while time charter rates remained broadly stable. Despite the near-term weakness, longer-term fundamentals remain supported by ongoing LPG export growth and a tight newbuild orderbook.

PCTC: Firm underlying demand despite seasonal slowdown
PCTC markets continue to benefit from structurally strong demand, although activity softened marginally amid seasonal factors and Lunar New Year-related disruptions. Chartering appetite remains healthy, supported by continued vehicle export flows out of Asia and constrained fleet supply, keeping utilisation high and rates resilient at elevated levels. India has announced its plans to slash tariffs on European imported cars to 40% from current levels at 110%. This is expected to increase demand for European vehicles in India and increase PCTC utilisation.

Geopolitics: Sanctions enforcement and trade shifts reshape flows
Geopolitical developments continue to influence shipping markets, with renewed enforcement of sanctions on Russian and Venezuelan crude reshaping trade patterns and tonnage deployment. This past week French officials seized a sanctioned Aframax while the US seized its seventh Venezuelan dark fleet tanker. Indian imports of Russian oil have declined, while the US has begun facilitating limited Venezuelan crude sales, increasing tanker employment but adding uncertainty to near-term trade flows. Broader geopolitical risks in the Middle East and evolving US foreign policy remain key variables for freight markets.