The Week in Charts: Red Sea U-turns continue as Houthis prepare more attacks | China’s continued vehicle export boom boosts PCTC charter rates
- Increased tensions in the Red Sea come after Saudi Arabia has sought to shift crude exports away from the Middle East Gulf
- China’s rapid growth to become the world’s largest vehicle exporter continues to push up demand in the global vehicle carrier market
- Global ship recycling slowed in the first half of 2026 with 156 vessels of a combined 3.6m gt recycled — nearly a 20% decline compared with the 2H25
Lloyd’s List’s weekly showing of the data and figures behind our news, analysis and markets coverage
Red Sea U-turns continue as Houthis prepare more attacks
More vessels have altered course in the Red Sea as the Houthis once again gear up to attack commercial shipping, wrote senior reporter Joshua Minchin and maritime risk analyst Tomer Raanan.
The rebel group declared a blockade on Saudi Arabian ports, starting at 1201 hrs UTC on July 20.
The Humanitarian Operations Coordination Center, which has acted as the Houthis public relations arm, sent an email to shipping companies, seen by Lloyd’s List, warning them not to call at Saudi ports.
China’s continued vehicle export boom boosts PCTC charter rates, asset values and newbuilding orders
China’s relentless expansion as the world’s largest vehicle exporter is continuing to reshape the global pure car and truck carrier market, pushing charter rates and secondhand vessel values higher while triggering a rebound in newbuilding orders across various vessel size segments, reported markets editor Rob Willmington.
According to Veson Nautical, strong export demand from China, coupled with continued disruption to traditional shipping routes, has maintained an unusually tight balance between vessel supply and demand throughout the first half of 2026.
The combination has created a highly favourable market for operators and PCTC tonnage providers, with more long-term charter contracts and rising asset prices all pointing to sustained strength in the sector.
Shadow tankers and sanctioned boxships boost recycling
Global ship recycling activity slowed during the first half of 2026, with volumes dropping by almost 20% compared with the second half of 2025, although the market received a boost from the demolition of several shadow fleet* tankers and two sanctioned post-panamax containerships, wrote Rob Willmington.
According to Lloyd’s List Intelligence data, 156 ships totalling 3.6m gt arrived at recycling yards during the first six months of 2026, down from 171 vessels and 4.4m gt in the second half of 2025.
Robust freight markets across most shipping sectors, combined with geopolitical uncertainty, continued to discourage owners from retiring ageing tonnage.
Hormuz tanker transits slump as attacks mount and dark voyages dominate
Tanker traffic through the Strait of Hormuz continued its sharp decline last week as the US and Iran exchanged blows, with dark transits now dominating the picture amid a worsening security backdrop that saw yet another vessel struck on Tuesday, reported APAC editor Cichen Shen.
Product tanker demand under pressure even as crack spreads surge
Near-term prospects for clean product exports from inside the Strait of Hormuz are grim, wrote senior maritime reporter Greg Miller.
Two product tankers — Kavomaleas (IMO: 1042823) and Kaifan (IMO: 9656046) — have been attacked by Iran, with their crews abandoning both vessels after they were set ablaze.
The outlook for clean exports out of Russia is similarly constrained, with Russia temporarily banning exports of diesel, its most important product tanker cargo.
