OPEC reported a mixed performance in the tanker market during May. Spot rates for Very Large Crude Carriers (VLCCs) remained stable on the Middle East-to-West and West Africa-to-East routes, while the Middle East-to-East route saw a slight decline of 2%.
The overall market sentiment was affected by an oversupply of vessels coupled with limited long-haul demand. In the clean tanker segment, East of Suez rates increased by 4% month-on-month, but West of Suez rates fell by 9%.
When examining dirty tanker freight rates, VLCC rates in May averaged WS60 for the Middle East-to-East route, reflecting a 2% decrease from April and a significant 12% drop year-on-year. Meanwhile, the Middle East-to-West route maintained its average at WS33, still down 25% compared to the previous year.
The West Africa-to-East route also saw stable rates at WS62, which represent an 11% decline compared to the same period in 2024. Suezmax spot freight rates were not as favorable, experiencing an average decrease of 21% month-on-month and a 17% decline year-on-year.
Specifically, rates for the West Africa-to-USGC route averaged WS80 in May, marking a 20% drop from the previous month and a 22% decrease from the same month last year. Rates on the USGC to Europe route also fell, losing 22% to average WS74.
Aframax rates suffered the most significant declines, with a 25% drop month-on-month and a 27% decrease year-on-year. Rates on the Indonesia-to-East route averaged WS116, while Caribbean-to-USEC rates plummeted 36% to WS135.
Additionally, the Cross-Med and Med-to-NWE rates experienced substantial declines, underscoring overall market challenges.