Limited vessel availability lifts tanker and VLGC earnings, while Chinese vehicle exports support car carrier demand.

Tankers: Suezmax earnings jump 72% as charterers turn to smaller ships

Suezmax earnings rose 72% last week to approximately USD 628,000/day, while Aframax earnings increased 8% to around USD 272,000/day. Charterers continue to split larger crude cargoes onto smaller vessels, tightening availability across both segments. Strong demand in the Atlantic helped push Suezmax rates to new records, with little sign of immediate relief for charterers. The strength also extends to longer contracts: Clarksons’ one-year Suezmax assessment reached approximately USD 145,000/day, giving owners opportunities to secure elevated earnings beyond the current spot market.

LPG/VLGC: Record earnings hold despite some relief at Panama

VLGC earnings on the US Gulf–Japan route reached a new high of approximately USD 194,000/day. A wider price difference between US and Asian LPG encouraged further shipments, leaving few vessels firmly available before mid-November. Panama Canal conditions are improving following rainfall, with an additional daily Neo-Panamax slot opening from 15 October. However, total transit capacity will remain below normal, while tight vessel availability continues to support freight rates and owners’ negotiating position.

PCTC: Chinese export growth supports stronger charter rates

Car carrier demand remains firm, with charter rates for a 6,500 CEU vessel standing at approximately USD 95,000/day, their highest level outside the 2022–2024 boom. BYD’s September exports rose 154% year-on-year to nearly 180,000 vehicles, while Geely’s more than doubled to approximately 107,000. These export volumes continue to support seaborne demand, although upcoming EU–China trade talks could influence where vehicles are shipped and how trade develops.

Geopolitics: Gulf exports recover, but shipping risks persist

Crude flows through the Strait of Hormuz exceeded 12 million barrels per day, with Middle East exports approaching pre-war levels as producers make greater use of bypass pipelines, shuttle vessels and offshore transfers. Yet renewed tanker attacks show that recovering volumes have not brought a return to normal shipping conditions. The G7 has agreed to release 100 million barrels of crude and diesel reserves over four months to ease supply pressures. For shipowners, limited vessel availability and higher security costs continue to support freight rates even as more oil reaches the market.

Sources: BRS Shipbrokers, Clarksons & MB Shipbrokers