Tanker Market Softened in April

Spot fixtures
Global spot fixtures fell sharply in April, with fixtures down by almost 5 mb/d, or 35%, m-o-m, to average 9.3 mb/d. Compared with April 2023, global spot fixtures were down by 4.9 mb/d, or over 34%. OPEC spot fixtures averaged 6.6 mb/d in April, representing a drop of 3.7 mb/d, or 36%. Compared with the same month last year, fixtures declined by about 3.1 mb/d, or 32%.
Middle East-to-East fixtures declined 1.6 mb/d, or almost 27%, to average 4.4 mb/d. Compared with the same month in 2023, fixtures on the Middle East-to-East route fell by about 1.4 mb/d, or over 24%. Spot fixtures on the Middle East-to-West route declined by 0.6 mb/d, or about 49%, m-o-m, to average 0.6 mb/d. Fixtures were also down 0.6 mb/d or 51%, y-o-y. Fixtures on routes outside the Middle East fell 1.5 mb/d, or 48%, m-o-m, to average 1.6 mb/d. Compared with the same month of 2023, fixtures were 1.1 mb/d, or 41%, lower.
Sailings and arrivals
OPEC sailings increased by 0.9 mb/d, or over 4%, m-o-m, to average just under 22 mb/d in April. Compared with the same month in 2023, OPEC sailings were broadly unchanged. Middle East sailings averaged 17.5 mb/d in April, representing an increase of 0.4 mb/d, or about 2%, m-o-m. Y-o-y sailings from the region declined by 0.2 mb/d, or 1%. Crude arrivals increased again in all monitored regions.
North American arrivals rose 0.7 mb/d, or about 8%, to average 9.5 mb/d. Compared with April 2023, North American arrivals were 0.4 mb/d, or over 4%, lower. Arrivals to Europe edged up by about 0.1 mb/d, or less than 1%, to average 12.7 mb/d. Compared with the same month of 2023, arrivals to Europe were 0.6 mb/d, or 5%, higher. Far East arrivals rose by 1.0 mb/d, or about 6%, m-o-m, to average 17.3 mb/d in April. Y-o-y arrivals in the region were up by 2.4 mb/d, or over 16%. Arrivals in West Asia averaged 10.1 mb/d, representing an increase of 1.4 mb/d, or over 16%, in April. Y-o-y, arrivals in the region increased 1.6 mb/d, or 18%.
Dirty tanker freight rates
Very large crude carriers VLCC spot rates were softer in April. On average, VLCC spot freight rates fell 11%, m-o-m. Compared with the same month of 2023, VLCC rates were 8% lower. On the Middle East-to-East route, rates dropped by 11%, m-o-m, to average WS62 points. This represents a y-o-y decline of 6%. Rates on the Middle East-to-West route also fell 11%, m-o-m, in April to average WS42 points. Compared with the same month of 2023, rates on the route declined by 13%. Similarly, West Africa-to-East spot rates slipped 1%, m-o-m, to average WS63 points in April. Compared with the same month of 2023, rates were 5% lower.
Suezmax
Suezmax spot freight rates improved in April, edging up 5%, m-o-m. They were up 10% compared with the same month of 2023. On the West Africa-to-USGC route, spot freight rates in April averaged WS106, representing a recovery of 7%, m-o-m. Compared with the same month of 2023, spot rates rose 4%. Rates on the USGC-to-Europe route increased 3%, m-o-m, to average WS91 points. Compared with the same month of 2023, they rose 18%.
Aframax
Aframax spot freight rates rose in the Mediterranean and the Atlantic basin. On average, rates rose 8%, m-o-m, and they were 6% higher than in the same month of the previous year. Spot rates on the Caribbean-to-US East Coast (USEC) route rose 10%, m-o-m, to average WS170 points in April. Rates were 47% higher compared with the same month of 2023.
Cross-Med spot freight rates rebounded by 15%, m-o-m, to average WS183 points. This represents a 4%, y-o-y, increase. Meanwhile, rates on the Mediterranean-to-Northwest Europe (NWE) route rose 12%, m-o-m, to average WS176 points. Compared with the same month of 2023, rates were up just 2%. In contrast, rates on the Indonesia-to-East route fell 5%, m-o-m, to average WS158 points in April. Compared with the same month of 2023, rates were 13% lower.
Clean tanker freight rates
Clean spot freight rates declined, with East of Suez rates down 10%, m-o-m, and West-of-Suez rates falling 20%. As a result, clean spot rates averaged 15% lower overall.
Rates on the Middle East-to-East route fell 9%, m-o-m, to average WS225 points in April. Compared with the same month in 2023, rates were still up 11%. Clean spot freight rates on the Singapore-to-East route declined 10%, m-o-m, to average WS252 points. This represents a 4% gain compared with the same month of 2023. Spot freight rates on the NWE-to-USEC route declined 13%, m-o-m, to average WS180 points.
This represents a 17% decrease compared with April 2023. Rates around the Mediterranean experienced relatively larger losses, with the Cross-Med declining 23%, m-o-m, to average WS249 points, and rates on the Med-to-NWE route falling 22%, m-o-m, to average WS259 points. When compared with the same month of 2023, rates were about 5% lower on both routes.
Nikos Roussanoglou, Hellenic Shipping News Worldwide