Tariffs create uncertainty – tanker market remains strong

Tanker market conditions remain healthy, with average crude tanker earnings rising above $53,000 per day for the first time in 11 months. The gain was driven by further strength in Suezmax and Aframax rates. Meanwhile, product tanker earnings eased by 8% week-on-week to $22,007 per day, as volatility in financial markets weighed on sentiment in the MR segment.

US/China friction causes VLGC disruption
In the VLGC market, rates saw a steep correction amid escalating US-China trade tensions. Spot earnings on the Ras Tanura–Chiba route dropped by 62% week-on-week to $14,590 daily, marking the lowest level since September 2024 and the sharpest weekly decline in over a decade. While spot rates are currently weak, this appears to be a short-term shock. The market is expected to stabilize once trade war uncertainty eases.

Car carrier market on the mend after tough months
In the PCTC segment, global car sales rebounded in March, rising 8% year-on-year, supported by strong demand in the UK, Japan, and the US. This marks a welcome return to growth after several slow months, although March is typically a strong month seasonally. Encouragingly, the US also signalled possible flexibility on vehicle tariffs, which could support trade flows and sentiment in the car carrier market in the future.