Fearnley’s, a global leader in marine transactions, reaffirmed their positive stance toward the Tanker segment.

Overall tanker markets softened last week due to the Thanksgiving holiday in the USA. However, shipbroker and research provider Fearnley’s reaffirmed their positive outlook for the tanker segment and repeated their Buy recommendation on the crude tanker segments, citing the lowest order book since the 1980s (4.5%), a strong winter market, high refinery margins, and low inventories. 

Suezmax rates remained relatively stable, supported by stronger-than-expected fixing activity at the start of the week. Weaker fundamentals were expected for the end of the week as the extended Thanksgiving weekend in the US reduced activity levels; however, week-on-week rates remained quite stable. 

Aframax came down in the recently strong Mediterranean market despite reasonable cargo activity, as surrounding markets could not offer support. Activity levels were also impacted by the holiday market in the US.

“The Thanksgiving holiday weekend limited activity at the back end of the week; while fundamentals remain attractive”

VLCC markets softened this week, primarily driven by limited volumes. Volumes from the Middle East Gulf were limited but held up better in the West looking into December. The softening comes after a recent sizeable increase in rates, and thus rates remain historically high. However, Clarksons Research see few near-term catalysts to drive upside in the VLCC segment.

There is no change to the Panama Canal situation and more evidence that vessels are avoiding the Panama Canal. An article in TradeWinds highlights a Glencore-chartered MR tanker, taking a route from Chile to the Northeast of America via the Strait of Magellan, a detour of thousands of miles via the South American continent to avoid the Panama Canal.