Rates remain high behind global political tensions. 

Suezmax markets faced weaker fundamentals setting conditions for rates to slide somewhat. Conditions in the Atlantic particularly favored charterers over owners, while the Middle East Gulf remained fairly active, leading to some rate increases.

Aframax markets experienced a strong start to the week, especially relative to recent weeks; however, rates remained mostly steady, despite the higher activity. Cross Mediterranean routes and the Black Sea were particularly active, with some players looking for safe itineraries over the Christmas period.

“Tanker rates were mixed across routes but generally moved lower. Markets now anticipate effects from the Red Sea situation.”

VLCC markets saw rates drop after tracking sideways for several weeks. Activity in the Atlantic was stronger than in the East. Enquiry levels were consistent in the Atlantic with high fixing volumes, which has shortened the position list, leading owners to hope for a floor to be found next week.

Global shipping markets faced disruption in the Red Sea last week as Houthi Rebels increased their attacks, targeting East-West trade and causing a fire onboard a Norwegian tanker via a missile attack last week. Over the weekend, markets saw decisive action from a growing number of shipping companies, particularly containers, suspend activity through the Red Sea. Their vessels are re-routing via the Cape Of Good Hope, adding significant distance to routes going from 17 days through Suez to 41 days around Africa. BP is the first major oil producer to pause transits through the Red Sea, and if/when others join them, significant tonne-miles will likely be added to the industry, which has driven a broad rally in shipping shares over the recent days.