Tanker Market Rose in January

Spot fixtures
Global spot fixtures declined sharply in January, dropping 5.1 mb/d, or about 35%, m-o-m, to average 9.5 mb/d. Compared with January 2023, global spot fixtures fell 3.9 mb/d, or 29%. OPEC spot fixtures decreased by almost 3 mb/d, or about 31%, to average 6.8 mb/d in January. Compared with the same month last year, fixtures declined by about 2.1 mb/d, or 24%. Middle East-to-East fixtures dropped 1.7 mb/d, or almost 29%, to average 4.2 mb/d. Compared with the same month in 2023, fixtures on the Middle East-to-East route fell 0.7 mb/d, or about 14%. In contrast, spot fixtures on the Middle East-to-West route fell by 0.4 mb/d, or 43%, m-o-m, to average 0.5 mb/d. Fixtures were down 0.8 mb/d or 59%, y-o-y. Fixtures on routes outside the Middle East declined by 0.9 mb/d, or over 31%, m-o-m, to average 2.0 mb/d. Compared with the same month of 2023, fixtures were 0.7 mb/d, or 25%.
Sailings and arrivals
OPEC sailings increased by 0.8 mb/d, or 4%, m-o-m, to average 19.9 mb/d in January. Compared with the same month in 2023, OPEC sailings were 2.0 mb/d, or 9% lower. Middle East sailings averaged 16.4 mb/d in January, representing an increase of 0.2 mb/d, or over 1%, m-o-m. Y-o-y, sailings from the region were 0.5 mb/d, or about 3%, lower. Crude arrivals rose in all destinations except North America. North American arrivals fell by 0.5 mb/d, or about 5%, to average just under 9 mb/d. Compared with January 2023, North American arrivals were 0.5 mb/d, or about 5%, lower. In contrast, arrivals in Europe increased by about 0.1 mb/d, or about 1%, to average 12.3 mb/d.
Compared with the same month of 2023, arrivals to Europe rose by 0.1 mb/d, or less than 1%, in January. Far East arrivals rose 1.0 mb/d, or about 6%, m-o-m, to average 17.5 mb/d. Y-o-y, arrivals in the region were up 2.0 mb/d or over 13%. Arrivals in West Asia averaged 9.2 mb/d, representing an increase of 0.7 mb/d or almost 9%. Y-o-y, arrivals in the region were 0.6 mb/d, or about 13%, higher.
Dirty tanker freight rates
Very large crude carriers
VLCC spot rates recovered in January on all monitored routes, with the Middle East-to-West route leading gains. On average, VLCC spot freight rates rose 12%, m-o-m. Compared with the same month of 2023, VLCC rates were 24% higher.
Rates on the Middle East-to-West route increased 24%, m-o-m, to average WS62 points. Compared with the same month of 2023, rates on the route were 27% higher. On the Middle East-to-East route, rates rose by a more moderate 5%, m-o-m, to average WS46 points. This represents a y-o-y increase of 18%. West Africa-to-East spot rates were up 10%, m-o-m, to average WS65 points in January. Compared with the same month of 2023, rates were up 27%.
Suezmax
Suezmax spot freight rates recovered most of the previous month’s losses in January, increasing 33%, m-o-m. They were 19% higher than in the same month of 2023. On the West Africa-to-USGC route, spot freight rates increased 32%, m-o-m, in January to average WS125 points. Compared with the same month of 2023, spot rates gained 7%. Rates on the USGC-to-Europe route rose 34%, m-o-m, to average WS115 points. Compared with the same month of 2023, they were 35% higher.
Aframax
Aframax spot freight rates rebounded in January. On average, rates rose 38%, m-o-m, but were still 2% lower than in the same month of the previous year. Rates on the Indonesia-to-East route saw a modest gain of 6%, m-o-m, to average WS169 points in January. Compared with the same month of 2023, rates were 32% lower.
Spot rates on the Caribbean-to-US East Coast (USEC) route surged 108%, m-o-m, to average WS281 points in January. Compared with the same month of 2023, rates were up 85%.
Cross-Med spot freight rates increased 26%, m-o-m, to average WS190 points. This represents a 14% decline, y-o-y. Meanwhile, rates on the Mediterranean-to-Northwest Europe (NWE) route increased 21%, m-o-m, to average WS173 points. Compared with the same month of 2023, rates declined 18%.
Clean tanker freight rates
Clean spot freight rates saw a bifurcated market in January. Clean spot freight rates East of Suez jumped 45%, m-o-m, while rates in the West-of-Suez market declined 10%. As a result, clean spot rates averaged 7% higher overall. The re-routing of some tankers around the Cape of Good Hope left the East of Suez temporarily short of vessels, driving up rates.
Rates on the Middle East-to-East route jumped 58%, m-o-m, to average WS244 points. Compared with the same month in 2023, rates were up 16%. Clean spot freight rates on the Singapore-to-East route increased 34%, m-o-m, to also average WS244 points. This was 11% higher than in the same month of 2023. In contrast, spot freight rates on the NWE-to-USEC route declined 7%, m-o-m, to average WS176 points.
This represents a 4% drop compared with January 2023. Rates for the Cross-Med route fell 12%, m-o-m, to average WS231 points, and rates on the Med-to-NWE route showed a similar loss, down 12%, m-o-m, to average WS241 points. However, compared with the same month of 2023, rates were up around 13% on both routes.
Nikos Roussanoglou, Hellenic Shipping News Worldwide