Houthi attacks expected to continue to year end 2024 – Maersk.

In recent weeks, tanker markets have focused on the ongoing strength created by growing ton-miles, driven by growing supply from the US, Brazil, and Guyana. Shipbroker Poten last week in their newsletter focused on similar ton-mile growth, instead driven by Namibia, as “based on current discoveries alone, Namibia could produce 500,000 b/d within a decade and more than 1 million b/d on a longer-term basis”. Growing supply from non-Middle East nations is increasing the fragmentation of global crude supply and contributing to greater ton-miles, which can drive tanker demand for years to come.

“Namibia to drive tanker demand as crude production is scaled-up”

Disruptions in the Red Sea, caused by Houthi attacks on vessels in the region, are worsening, according to container giant Maersk. The company is now expecting the disruptions to last until the end of the year. This comes as Israel rejected a ceasefire and hostage release proposal mediated by Qatar and Egypt, which had been accepted by Hamas. Ongoing attacks in the Red Sea continue to support increased ton-miles for the tanker market.