Tanker Market on the Rise

In contrast, VLCC spot freight rates saw a more moderate increase, with rates on the Middle East-to-East route up 26%, m-o-m, amid increased long-haul activity. Meanwhile, clean rates saw slightly mixed movement. East of Suez rates were almost flat m-o-m, supported by an increase on the Middle East-to-East route, which rose 6%, m-o-m. West of Suez rates fell 19%, m-o-m, as margins weakened in the Atlantic basin amid high inventories of key products.
Spot fixtures
Global spot fixtures increased in October, up 0.2 mb/d, or almost 2%, m-o-m, to average 15.1 mb/d. Compared with the same month last year, spot fixtures were 0.4 mb/d or 3% higher. OPEC spot fixtures declined 0.4 mb/d, or over 3%, to average 10.6 mb/d in October. Compared with the same month in 2022, fixtures were 0.4 mb/d, or 4% lower.
Middle East-to-East fixtures edged up by less than 1% to average 6.1 mb/d. Compared with the same month in 2022, eastward flows from the Middle East were broadly flat. In contrast, spot fixtures on the Middle East-to-West fell by about 4%, m-o-m, to an average of 1.4 mb/d. Fixtures were broadly in line with year-ago levels.
Fixtures on routes outside the Middle East fell by 0.4 mb/d, or just over around 10%, m-o-m, to average 3.1 mb/d. Compared with the same month last year, fixtures were 0.4 mb/d, or 16% higher.
Sailings and arrivals
OPEC sailings rose 0.5 mb/d or 2%, m-o-m, to average 23.6 mb/d in October. However, compared to the same month last year, OPEC sailings were down by 1.7 mb/d, or over 6%. Middle East sailings averaged 16.4 mb/d in October, representing a decline of 0.2 mb/d, or about 1%. Y-o-y, sailings from the region were 1.4 mb/d, or 8% lower. Crude arrivals in October fell in all regions.
North American arrivals fell by 0.3 mb/d, or about 3%, to average 8.8 mb/d. Y-o-y, arrivals in North America were also down 0.3 mb/d, or 3%. Arrivals in Europe declined 0.2 mb/d, or about 2%, to average 12.4 mb/d. Compared to the same month last year, arrivals to Europe registered a similar decline of 0.2 mb/d, or about 2%. Far East arrivals also declined by about 0.2 mb/d, or almost 2%, m-o-m, to average 12.8 mb/d. Y-o-y, arrivals in the region were 2.5 mb/d or 16% lower. Arrivals in West Asia decreased by 0.2 mb/d, or around 3%, to an average of 6.9 mb/d. Y-o-y, arrivals in the region were 1.7 mb/d, or almost 20% lower.
Dirty tanker freight rates
Very large crude carriers
VLCC spot rates rose on all monitored routes, increasing 24%, m-o-m, on average, amid a pickup in longer haul demand. However, compared to the same month last year, VLCC rates were 41% lower. On the Middle East-to-East route, rates gained 26%, m-o-m, to average WS53 points. This represented a y-o-y decline of 43%. Rates on the Middle East-to-West route gained 19%, m-o-m, to average WS32 points. Compared to the same month last year, rates on the route fell 41%. West Africa-to-East spot rates increased 19%, m-o-m, to average WS56 points in October. Compared with the same month of 2022, rates were down 41%.
Suezmax
Suezmax rates experienced the strongest m-o-m gains compared to the other vessel classes. Spot rates rose 76%, m-o-m, but were still 27% lower than the elevated levels seen in the same month last year. On the West Africa-to-US Gulf Coast (USGC) route, spot freight rates rose 58%, m-o-m, in October to average WS106 points. However, rates were still 29% lower, y-o-y. Rates on the USGC-to-Europe route jumped 98%, m-o-m, to average WS99 points. Compared with the same month of 2022, they were 24% lower.
Aframax
Aframax spot freight rates also performed strongly in October. On average, Aframax rates increased 68% in October. Compared with the same month of 2022, rates were 27% lower. Rates on the Indonesia-to-East route increased 24%, m-o-m, to average WS156 points in October. However, compared with the same month last year, rates were 23% lower.
Spot rates on the Caribbean-to-US East Coast (USEC) route saw the strongest m-o-m gain in the monitored Aframax routes, surging by 126%, m-o-m, to average WS192 points in October. However, y-o-y rates were still down by 33%.
Cross-Med spot freight rates increased 74%, m-o-m, to average WS171 points. This represented a 25% decline, y-o-y. Meanwhile, rates on the Mediterranean-to-Northwest Europe (NWE) route rose 71%, m-o-m, to average WS162 points. Compared with the same month of 2022, rates were down by around 24%.
Clean tanker freight rates
Clean rates saw declines on all monitored routes except on the Middle East-to-East. On average, clean spot freight rates on East of Suez routes slipped 1% lower, m-o-m, while rates in the West of Suez market fell 19% over the same period. As a result, rates averaged 13% lower overall.
Rates on the Middle East-to-East route edged up 6%, m-o-m, to average WS165 points. However, compared to the same month last year, rates were 12% lower. Clean spot freight rates on the Singapore-to-East route declined 5%, m-o-m, to average WS217 points. This was 32% lower when compared with the same month of 2022. The NWE-to-USEC route declined 11%, m-o-m, to average WS163 points. This represents a 41% decline compared to October 2022. Rates for the Cross-Med route decreased by 23%, m-o-m, to average WS191 points, while rates on the Medto-NWE route dropped by 22%, m-o-m, to average WS201 points. Compared with the same month of 2022, rates fell by around 38% on both routes.
Nikos Roussanoglou, Hellenic Shipping News Worldwide