Tankers: geopolitics will be wildcard, but demand is fundamentally unexciting
- Both crude tanker and product tanker rates were down year on year during 1H25, and rates later in the first half were down from year-to-date highs
- VLCCs are attracting the most bullishness, due to Opec+ production increases and very low near-term orderbook deliveries
- Product tanker rates have been weaker than crude tanker rates, and the LR2 orderbook continues to raise concerns
Predicting what happens in the second half of the year with tankers (or any other shipping segment) may be a fool’s game, given all of the geopolitical chaos. But the base case for tankers is for steady, uninspiring profitability, as the fundamentals are not particularly strong
