Tanker Market Suppressed During January

The tanker market has been suppressed during the month of January, OPEC said in its latest monthly report. Dirty spot freight rates registered a slow start to the year. VLCCs showed the best performance in January, with the Middle East-to-East route up 38%, m-o-m, amid increasing activities on the longer haul routes. The Suezmax and Aframax markets fared less well, amid more muted activities. Suezmax rates on the US Gulf Coast-to-Europe route declined 11%, m-o-m, while Aframax spot rates around the Mediterranean fell 18%, m-o-m. In the clean tanker market, East of Suez rates rose 20%, m-o-m, on average, while West of Suez rates fell 5%, m-o-m.

Dirty tanker freight rates

Very large crude carriers (VLCC)

After a sluggish performance at the end of 2024, spot freight rates for VLCCs picked up in January on all monitored routes. On average, VLCC spot freight rates were up 31%, m-o-m. Gains, however, were not enough to outpace the same month last year. As a result, VLCC spot rates were down 11% on average, y-o-y. On the Middle East-to-East route, rates averaged WS58 in January, representing a gain of 38% compared to the previous month. Y-o-y, rates were 6% lower.

The Middle East-to-West route also saw higher rates, m-o-m, with a gain of 21% to average WS35. Compared with the same month in 2024, rates on the route were down 24%. Spot freight rates on the West Africa-to-East route also increased in January, rising 25%, m-o-m, to average WS60. Compared with the same month in 2024, rates were down 8%.

Suezmax

Spot freight rates for Suezmax vessels fell further in January, amid limited activities. Spot rates declined 12%, m-o-m, and were down 45%, y-o-y. On the West Africa-to-USGC route, spot freight rates in January averaged WS69, representing a decline of 13%, m-o-m. Spot rates were 45% lower compared with the same month in 2024. Rates on the USGC-toEurope route fell 11% to average WS63. Compared with the same month in 2024, rates were also 45% lower.

Aframax

Aframax spot freight rates showed the largest m-o-m decline, down 16% in January. Y-o-y, Aframax spot rates were down 41% compared with the same month in 2024. Rates on the Indonesia-to-East route dropped by only 3%, m-o-m, to an average of WS117 in January. Y-o-y, rates on the route were down 31%.

On the Caribbean-to-USEC, spot freight rates were down 22%, m-o-m, to average WS124 in January. Y-o-y, rates were 56% lower than in the same month last year. Meanwhile, cross-Med spot freight rates dropped 18%, m-o-m, to average WS121. Compared with the same month last year, spot rates on the route were 36% lower. Rates on the Med-to-Northwest Europe (NWE) route averaged WS119, representing a decline of 18%, m-o-m. Compared with the same month in 2024, rates were 31% higher.

Clean tanker freight rates

Clean spot freight rates showed mixed movements, m-o-m, in January. East of Suez rates moved 20% higher on average, while West of Suez rates edged down 5%. Compared to the previous year, East of Suez rates were still 40% lower and West of Suez rates were down 24%.

Rates on the Middle East-to-East route rose 33%, m-o-m, to average WS146 in January. Compared with the same month in 2024, rates were down 40%. Clean spot freight rates on the Singapore-to-East route saw a lesser increase, rising 8%, m-o-m. Rates on the route averaged WS146, representing a 40% decline compared with the same month in 2024.

Over in the Atlantic basin, clean rates on the NWE-to-USEC route averaged WS144. This was a gain of 10%, m-o-m, but a drop of 18%, y-o-y. In contrast, rates around the Mediterranean moved lower. On the Cross-Med route, spot freight rates fell 11%, m-o-m, to average WS169 and were 27% lower, y-o-y. Rates on the Med-toNWE route averaged WS179, representing a decline of 10%, m-o-m, and a loss of 26%, y-o-y.
Nikos Roussanoglou, Hellenic Shipping News Worldwide