FREIGHT
While tanker rates have been pressured recently amid weaker seasonal trends, OPEC production cuts, and lower crude demand out of Asia, Bloomberg expects some strength due to a favourable supply-demand environment through 2025.
- Time-charter rates for VLCCs have been seen declining recently as the industry moves into the weaker summer season, coupled with OPEC cuts in the Gulf.
- VLCC rates are down 56% on average year-to-date and 58% on the year.
- However, underlying crude tanker fundamentals are poised to remain strong into 2025 given the low order book, supportive for long-term rates.
- Longer tonne miles from Red Sea-related disruptions will also support rates, Bloomberg said.
- The number of crude tankers moving through the Suez Canal was 35 over the past seven days, down 52% year-on-year.
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