Tanker Market: December Was a Mixed Bag

In the clean tanker market, East of Suez rates edged up 1%, m-o-m, on average, while West of Suez rates showed a strong performance, gaining 20%, m-o-m.
Spot fixtures
Global spot fixtures declined m-o-m in December, averaging 12.6 mb/d for the month, representing a drop of 1.3 mb/d, or about 9%, m-o-m. Compared with December 2023, global spot fixtures were down 1.8 mb/d, or 12%. Middle East-to-East fixtures fell by 0.6 mb/d, or 8%, m-o-m, to average 6.3 mb/d. However, y-o-y, fixtures on the route were 0.5 mb/d, or 9%, higher. In December, spot fixtures on the Middle East-to-West route fell 0.2 mb/d, or about 17%, m-o-m, to average 0.9 mb/d. Compared with the same month last year, fixtures were down by less than 0.1 mb/d, or about 5%. Spot fixtures on ‘Outside Middle East’ routes also declined, down 0.3 mb/d, or 11%, m-o-m, to average 2.3 mb/d. Compared with the same month in 2023, fixtures were down by 0.6 mb/d, or 20%.
Sailings and arrivals
Middle East sailings were broadly unchanged in December averaging around 16.4 mb/d. Y-o-y, sailings from the region were 0.2 mb/d, or 1%, higher
Crude arrivals were mixed East and West of Suez, experiencing gains and declines, respectively. Far East arrivals averaged 14.5 mb/d in December, representing a marginal gain of less than 1%. Y-o-y, arrivals were down, however, falling 0.5 mb/d, or about 3%. Arrivals in West Asia saw stronger gains, rising 1.1 mb/d, or 13%, to average 9.5 mb/d. Compared with the same month last year, arrivals in the region were up 1.9 mb/d, or almost 26%.
In contrast, North American arrivals fell 0.3 mb/d, or about 3%, to average 9.6 mb/d. Compared with December 2023, they were 0.4 mb/d, or about 4%, higher. Arrivals to Europe fell by 0.2 mb/d, or less than 2%, m-o-m, to average 11.8 mb/d. Compared with the same month in 2023, they were down 0.5 mb/d, or 3%.
Dirty tanker freight rates
Very large crude carriers (VLCC)
Spot freight rates for VLCCs declined on all monitored routes for the second month in a row in December. On average, VLCC spot freight rates fell by 15%, m-o-m, and declined by 24% compared with the same month in 2023. On the Middle East-to-East route, rates averaged WS42 in December, falling 18% compared to the previous month. Y-o-y, rates were 29% lower. The Middle East-to-West route also registered a loss in December, declining 12%, m-o-m, to average WS29. Compared with the same month in 2023, rates on the route fell by 22%.
Spot freight rates on the West Africa-to-East route also moved lower, dropping 11%, m-o-m, to average WS48 in December. Compared with the same month in 2023, rates were down 19%.
Suezmax
Suezmax spot rates showed an improvement in December, rising by 7%, m-o-m. However, they were still lower by 17%, y-o-y. On the West Africa-to-USGC route, spot freight rates in December averaged WS79, representing an increase of 5%, m-o-m. Spot rates were still 17% lower compared with the same month in 2023. Rates on the USGCto-Europe route showed a larger increase, rising 9% to average WS71. Compared with the same month in 2023, rates were also 17% lower.
Aframax
Aframax spot freight rates showed an improved performance in December after the previous month’s decline. On average, rates were up 14%, m-o-m, while y-o-y spot rates were just 3% lower than in the same month of 2023.
Rates on the Indonesia-to-East route were the only monitored route to register a decline, m-o-m. Rates dropped 10% from the previous month’s levels to an average WS121 in December. Y-o-y, spot rates on the route were down 24%. Spot rates on the Caribbean-to-USEC route jumped 42%, m-o-m, to average WS158 in December, largely erasing the previous month’s decline. Rates were 17% higher than the same month last year. Cross-Med spot freight rates rose 16%, m-o-m, to average WS148. Compared with the same month last year, spot rates on the route were slightly lower, down 2%. Rates on the Med-to-Northwest Europe (NWE) route averaged WS145, representing an increase of 14%, m-o-m. Compared with the same month in 2023, rates were 1% higher.
Clean tanker freight rates
Clean spot freight rates improved, m-o-m, across all monitored routes in December. East of Suez rates rose a marginal 1% on average, while West of Suez rates rose 20%. Compared to the previous year, East of Suez rates were down 27% and West of Suez rates were 28% lower.
Rates on the Middle East-to-East route edged 1% higher, m-o-m, to average WS110 in December. Compared with the same month in 2023, rates were 29% lower. Clean spot freight rates on the Singapore-to-East route also saw a gradual increase, up 2%, m-o-m. Rates on the route averaged WS135, representing a 26% decline compared with the same month in 2023. Rates in the Atlantic basin fared better, with spot freight rates on the NWE-to-USEC route up 21%, m-o-m.
Rates averaged WS131, which represents a drop of 31% compared with December 2023. Rates around the Mediterranean showed similar gains, m-o-m. Rates on the Cross-Med route were up 20%, m-o-m, to average WS189 but were 28% lower, y-o-y. Rates on the Med-to-NWE route increased 19%, m-o-m, but were 27% lower, y-o-y, averaging WS199.
Nikos Roussanoglou, Hellenic Shipping News Worldwide