US oil tariffs driving trade toward longer routes

Aframax earnings continue to climb – this time driven by a sharp shift in Canadian crude exports. Recent US tariffs on Canadian oil have redirected barrels away from the US Gulf and toward Europe, with buyers in the UK and Netherlands stepping in to secure alternative supply.

This rerouting has been a clear win for Aframax owners. More than 75% of these transatlantic and intra-European shipments are being handled by Aframax tonnage, driving spot rates sharply higher. North Sea Aframaxes alone surged by nearly 24% in a single week, with earnings touching close to $47,000 per day.

Healthy outlook for Q2 as tanker supply remains limited
With a tight tonnage list in both the Mediterranean and Northwestern Europe – and few ships ballasting from the US – charterers are competing for available vessels. As long as Canadian flows continue to head east, the Aframax segment looks set to stay strong into Q2.