Tanker rates surprisingly normal as epic Hormuz crisis nears three-month mark
- VLCC rates have found a floor at around $100,000 per day, which is exceptionally profitable but far from unprecedented
- Aframax rates have fallen sharply over the past month; cross-Med aframax rates are down 57% vs late February, pre-crisis, and are up only 12% year on year
- Much lower crude imports by China have kept freight and commodity pricing relatively restrained amid Hormuz crisis
Shipping, by nature, adapts to unusual and dramatically changed trading environments. Route diversions are a feature, not a bug. The tanker market is now well on its way to adapting to its most extreme disruption ever
