The tanker market experienced a downturn last month, reflecting various challenges across different segments of the shipping industry. In the dirty tanker market, very large crude carriers (VLCCs) saw a consistent decline across all monitored routes in March. The average spot freight rates for VLCCs dropped by 4% month-over-month (m-o-m) and were down 18% compared to the same month last year.
Specifically, the Middle East-to-East route averaged WS60, representing a 3% decrease from February amid reduced flows to South Korea and China. Rates for the Middle East-to-West route fell by 6% m-o-m to WS34, influenced by diminished exports to the U.S. Additionally, West Africa-to-East route rates decreased by 3% to WS61, despite an increase in VLCC flows from Nigeria. In contrast, Suezmax vessels in the Atlantic basin experienced a slight uptick in rates due to increased flows from Brazil and Canada.
The average spot rates for Suezmaxes rose by 6% m-o-m, though they remained 10% lower year-over-year (y-o-y). The West Africa-to-U.S. Gulf Coast route rates averaged WS87, a 5% increase from February, while the U.S. Gulf Coast-to-Europe route rates rose by 8% to WS82. Aframax rates also saw modest gains with a 7% m-o-m increase, although they were down 16% y-o-y.
Notably, the Caribbean-to-USEC route rates jumped 12% m-o-m to WS137. In contrast, clean tanker freight rates showed a more favorable trend, rising on average by 15% for East of Suez routes and 8% for West of Suez routes. Yet, both segments witnessed significant declines compared to last year, emphasizing the ongoing fluctuations within the tanker market.