Atlantic crude tanker rates retreat to pre-strait closure levels
- US Gulf-China VLCC rates assessed at $98,958 per day, West Africa-China VLCC rates at $109,346 per day — both in line with mid-February
- Black Sea-Med suezmax rates plunged 55% w/w, with cross-Med aframax rates down 35%, Colombia-US Gulf aframax rates down 31% and US-Gulf Europe aframax rates down 19%
- Pacific basin product tanker rates are still rising but Atlantic basin rates are off their highs; US Gulf-Europe MR rates fell 22% w/w to $71,916 per day
When geopolitical turmoil hits tanker markets, there is a panic-driven rate spike followed by a period of normalisation. The market reaction to the Strait of Hormuz crisis is following the script