Rerouting after Hormuz cuts clean tanker cargoes, yet fleet expands
Amid ongoing disruptions from the Strait of Hormuz standoff, clean tanker trade is being sustained by longer routes and shuttle operations, but with more newbuild ships on the way industry professionals are warning of a market reset. Shuttle and ship-to-ship operations have expanded sharply to bypass risks, sustaining flows that require far more clean tonnage ...
The ongoing disruption of the Strait of Hormuz has led to a shift in tanker trade routes, with longer hauls and shuttle operations compensating for reduced volumes. Jacob Balslev Meldgaard, CEO of Torm, noted that while fewer barrels were moved, they traveled significantly further. This rerouting has extended voyages, with a single voyage extension of over 30 days effectively removing a vessel from the market for an additional month.
Industry professionals warn of a market reset due to the influx of newbuild ships. BIMCO expects tanker demand to remain flat this year, before rising 2.5%-4.5% in 2027 as LR2 ships migrate from clean products to crude trading. The clean tanker market is tightening due to sanctions and aging fleet, but LR2 deliveries have accelerated, creating a more competitive chartering environment.
Shutdowns in Middle East refining and Russian export curtailments have contributed to strong refining margins. The Platts clean tanker index has increased 95% from the start of the year, while the Aframax index has risen 30%, suggesting less incentive for clean tankers to shift to the crude trade.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
