CLARKSONS HELLAS – SnP WEEKLY

Tanker rates have soared to record highs this week, driven by soaring oil shipments through the Strait of Hormuz. VLCC earnings now average over $600,000 per day globally, with rates near the Strait reaching up to $800,000 to $1.5 million per day. This surge is due to over 7.5 million barrels a day being moved via ship-to-ship transfers, with Saudi Arabia routing more crude through the Gulf.

Freight costs have jumped to 15% of a barrel's value, far exceeding the typical 2%. Product tankers, including Aframax, LR2, and MR, are also on the rise due to stronger flows out of Asia and the US Gulf. While there could be some relief if discussions between the US and Iran lead to Iran reopening the Strait, concerns remain about a potential US ban on diesel exports posing a risk to the product tanker market.

In dry bulk, Capesize rates have held around $52,500 per day, and Panama Canal traffic is improving as grain demand boosts. The market is currently focused on buying interest in prompt tonnage, particularly MR2 and VLCC vessels around 20 years old in the Singapore-AG range. On the dry bulk side, inquiries are centered on Capesizes around 15 years old, with Far Eastern buyers sourcing Supramax and Panamax tonnage in the 15-20 year age group.

No completed sales were reported this week, but notable transactions include the ECO-M/E unit SPEEDWAY (ABT 158K DWT, 2017, HYUNDAI SAMHO) being sold for $99 million and the LR2 vessel EUROINTEGRITY (ABT 105K DWT, 2009, HHI) selling for $60 million.