Strong Aframax/Suezmax performance bucks the trend

The tanker market has shown mixed trends this week, particularly with Aframaxes and Suezmaxes holding steady, while the largest crude carriers, the VLCCs, have experienced declining earnings. Historically, this time of year marks a low for the tanker market due to seasonality, characterised by limited activity and increased refinery maintenance. Despite some market volatility, our key tanker segments – Aframaxes/LR2s and Suezmaxes – continue to perform strongly, with earnings significantly above breakeven levels. Looking ahead, we remain optimistic as OPEC+ continues to unwind production cuts, thereby introducing more crude into the market and bolstering demand, even as we enter a typically slower seasonal period.

Vehicle market stable – gas rates rise overall.
In the gas segment, the VLGC (Very Large Gas Carrier) market saw firming activity in the West this week, driven by robust demand and a favourable pricing gap (arbitrage) between regions. In the East, fewer new cargo enquiries were recorded, but freight rates still increased as available vessels were diverted by the stronger US market. 
The PCTC market remained stable this week, with no major changes in earnings or notable developments, except for a reduction in US port fees for car carriers, which is a significant positive for the segment (read more here).