CLARKSONS HELLAS – SnP WEEKLY
The main discussion over the past few months has consistently been the significant increase in Hormuz crude oil flows and the associated surge in tanker earnings. Following the onset of the US-Iran crisis, cargo volumes shipped from the MEG to the East initially remained relatively modest amid the threats posed. However, shuttle volumes through the ...
In recent months, discussions surrounding the tanker industry have predominantly centered on the substantial rise in Hormuz crude oil shipments and the subsequent rise in tanker earnings. Following the commencement of the US-Iran conflict, cargo volumes shipped from the Mediterranean to the East remained relatively low due to the looming threats.
However, shuttle volumes through the Strait of Hormuz surged notably, averaging 10.5 million barrels per day in October. This surge granted a select group of tankers the potential to become significantly more efficient by carrying out ship-to-ship transfers over short distances.
Currently, following a consistent 6-month upward trend, tanker equity valuations are experiencing a decline in the wake of the Democrats' election triumph. This drop in valuations is attributed to a significant reduction in freight rates. Nevertheless, it is crucial to recognize that a decrease in war premiums on oil prices does not automatically mean the return of normal shipping conditions.
As long as the current disruptions persist, shipping conditions may continue to be abnormal due to security concerns, longer routes, shuttle voyages, ship-to-ship transfers, and extended waiting periods.
Despite these recent geopolitical events, asset values have remained robust, and activity in the S&P tanker market remains generally healthy. In the tanker market, the long-term implications of the election outcome remain uncertain and their effects are yet to be determined. In the dry bulk segment, the buying interest in the Capesize sector appears to be slightly subdued.
However, demand for Panamax vessels from Far Eastern buyers is notably strong, while geared tonnage remains in high demand across both basins. This is evident in the firm earnings and asset prices observed.
Additionally, the sale of two significant tanker vessels was reported. The LR2 HAIMA, a vessel with a total capacity of 104,991 DWT, was sold to undisclosed interests for around USD 65 million. Furthermore, the MIAO ZHOU, a tanker with a total capacity of 58,595 DWT, was sold for approximately USD 23 million to a buyer based in the Far East.
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.
