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FREIGHT: West of Suez Tanker Market Set for Sentiment Boost: Platts

FREIGHT
BulletEnergy BulletsCommodities

The West of Suez crude tanker segment underperformed in Q4 2024, contrary to expectations of a seasonal demand boost, Platts said.

  • VLCC market sentiment was bearish due to OPEC+ production cuts and weak Chinese demand.
  • Freight rates on the West Africa-Far East route averaged w55, hitting a 14-month low of w45 on Dec. 17, according to Platts pricing.
  • Opinions on the 2025 market outlook vary, with some expecting continued low earnings and others predicting a recovery.
  • US sanctions on 180 ships, could impact VLCC trade flow, boosting Chinese demand from the Persian Gulf as it eschews Russian and Venezuelan barrels. Chinese demand will be a key factor in rate trajectories.
  • The Suezmax market saw volatility but failed to recover from Q3 lows.
  • Freight rates on the WAF-UK/Continent route peaked at w102.25 in October but fell to w67 by year-end.
  • Stricter environmental regulations in 2025 will increase costs for shipowners, potentially supporting higher rates.
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The West of Suez crude tanker segment underperformed in Q4 2024, contrary to expectations of a seasonal demand boost, Platts said.

  • VLCC market sentiment was bearish due to OPEC+ production cuts and weak Chinese demand.
  • Freight rates on the West Africa-Far East route averaged w55, hitting a 14-month low of w45 on Dec. 17, according to Platts pricing.
  • Opinions on the 2025 market outlook vary, with some expecting continued low earnings and others predicting a recovery.
  • US sanctions on 180 ships, could impact VLCC trade flow, boosting Chinese demand from the Persian Gulf as it eschews Russian and Venezuelan barrels. Chinese demand will be a key factor in rate trajectories.
  • The Suezmax market saw volatility but failed to recover from Q3 lows.
  • Freight rates on the WAF-UK/Continent route peaked at w102.25 in October but fell to w67 by year-end.
  • Stricter environmental regulations in 2025 will increase costs for shipowners, potentially supporting higher rates.