The tanker market showed significant growth in February, reflecting various trends across different vessel categories. Spot freight rates for Suezmax vessels saw a remarkable 20% increase month-on-month on the West Africa-to-US Gulf Coast route, benefiting from tighter supplies of non-sanctioned vessels amid rising demand. Similarly, Aframax rates rose 9% month-on-month in the cross-Mediterranean trade, fueled by strong demand and increased restrictions on available vessels. The clean tanker segment also experienced some volatility but ended February with overall gains.
East of Suez rates increased by 2%, while West of Suez rates jumped by 12%, attributed to limited vessel availability. In the very large crude carrier (VLCC) segment, rates across monitored routes rose for the second consecutive month, recovering from late last year’s lows. The fresh sanctions imposed in January increased long-haul voyages from alternative suppliers, resulting in an approximate 4% month-on-month rise in VLCC spot freight rates, despite a year-on-year decline of 17%. The Middle East-to-East route saw spot rates average WS62, up 7% from January.
In contrast, West routes only experienced a modest gain of 3%, averaging WS36. The Suezmax segment continued to thrive, particularly on the US Gulf route, where rates rose sharply to WS83, driven by heightened demand and reduced availability. Although rates were still down 19% compared to the same month last year, the upward trend indicated robust market dynamics. Aframax rates generally posted moderate gains, rising 4% month-on-month, although they remained down 25% year-on-year.
Specific routes like the Indonesia-to-East saw a modest gain, while the Caribbean-to-US East Coast route suffered a 2% decline due to lower cargo demand. Overall, clean tanker freight rates experienced fluctuations, with East and West of Suez rates reflecting mixed trends. The Mediterranean region also reported gains, despite annual declines in rates. Overall, the tanker market outlook remains cautiously optimistic as demand improves against a backdrop of restrictive vessel availability.