Government aims to convert 10% of coal power to ammonia by ‘27 China’s renewable ammonia co-firing strategy is set to drive significant demand for ammonia transport, benefiting the Very Large Ammonia Carrier (VLAC) market. As part of its 2024-2027 economic action plan, China aims to retrofit coal power plants to co-fire at least 10% ammonia by 2027, requiring an estimated 200 million tons per year of ammonia fuel. A potential game-changer for VLAC marketsTo support this transition, the Chinese government

Rates boost is expected as further vessels are blacklisted The US has blacklisted 13 more tankers, including five VLCCs, while the EU has added 65 tankers to its list, further restricting sanctioned crude exports. These sanctions on shadow fleet tankers are set to increase demand for mainstream vessels, according to Fearnley Securities. Pronounced decline for Iranian exportsWith over 10% of VLCCs and Suezmaxes now blacklisted, and nearly 20% of the Aframax/LR2 fleet affected, crude and product exports from Iran and

Product market strenghtens – VLGC and PCTC remain stable This week has been relatively calm for the tanker segment. Suezmax earnings softened slightly week-on-week, with modern scrubber-fitted Suezmaxes Spot still strong at $45,000 per day on average. The product tanker market has shown some strengthening, with average earnings in the mid-$20,000s per day. Meanwhile, activity in the VLGC and PCTC markets has been limited, with minimal rate movements from last week. However, exciting developments are coming up for the ammonia segment,

European Commission set for €422m clean fuel infrastructure investment The European Commission is directing €422 million toward 39 projects under the Alternative Fuels Infrastructure Facility with a strong focus toward expanding clean fuel infrastructure, including maritime applications. Key investments include onshore power supply in ports, hydrogen refuelling, and infrastructure for ammonia and methanol as next-generation marine fuels. Testament to the clean fuel sector’s long-term viability Commissioner Apostolos Tzitzikostas emphasized the role of these projects in accelerating decarbonization and supporting the

Modest 2025 expected as US export constraints remain Soft LPG markets may persist in 2025, in particular throughout the year’s first six months. An LPG carrier fleet growth of 3.6% (excl. VLECs) is expected to outpace the combined LPG and ammonia tonne-mile trade growth of 1.8% this year. The growth in demand is primarily limited by LPG export capacity constraints in the US – although these may begin to ease in the second half of 2025. Long-term expectations positive –

US sanctions on Iran causing further boost in demand According to analysts from Clarksons and Braemar, spot rates for the largest crude tankers may surge to up to $80,000 per day as President Donald Trump’s administration tightens sanctions on Iranian oil exports. The crackdown is expected to shift more crude shipments to mainstream tanker fleets, boosting demand for compliant vessels. Clarksons estimates that replacing Iranian exports with barrels from Middle Eastern producers could require up to 38 additional VLCC equivalents.

Suezmax leading the pack as rates increase once more The tanker market remains strong this week, with the Suezmax segment seeing the most remarkable increase. According to Fearnleys, Suezmax spot rates have risen by 16% week-on-week, surpassing $50,000 per day. The Aframax and LR2 markets have also shown firm improvements. Gas, car markets holding firm for now By contrast, the LPG and PCTC markets remain relatively stable, with minimal changes in both activity and rates. While VLGC spot rates on

The impact of a potential truce will vary across different tanker segments This week, US president Donald Trump called for immediate Ukraine peace negotiations after a “highly productive” 90-minute call with Vladimir Putin. Ukraine’s president Zelenskyy also spoke with Trump, expressing hope for “lasting peace”.  Scrapyard-bound Russian fleet may boost market after detente While crude tanker markets may see limited direct impact, shifting trade flows could affect vessel demand. The largest crude tankers may benefit from a potential peace agreement,

Positive tanker market impact set to continue As part of its maximum pressure strategy on Iran, the US has issued new sanctions this week aimed at blocking Iranian oil sales. The objective is to reduce the country’s oil exports to zero, preventing the government from funding its nuclear program. The sanctions specifically target individuals and tankers involved in shipping millions of barrels of Iranian crude to China annually. According to VLCC charterer Hunter Group, these measures could positively impact the

Groundbreaking time-charter agreed for ammonia-fueled carrier Yara Clean Ammonia and Nippon Yusen Kabushiki Kaisha (NYK) have signed the world’s first time-charter agreement for an ammonia-fueled medium gas carrier. The vessel, set for delivery in November 2026, marks a key step in reducing emissions in the shipping sector. Major step towards sustainable supply chain This partnership, which began in 2021, aims to develop practical applications for ammonia-powered vessels and create a more sustainable supply chain as global demand for clean ammonia