Tariffs lead to uncertainty – the oil tanker market remains resilient
Tariffs create uncertainty – the oil tanker market remains strong. The conditions in the oil tanker market are favorable, with average earnings for crude tankers exceeding $53,000 per day for the first time in 11 months. This increase has been driven by further strengthening of Suezmax and Aframax rates.
At the same time, earnings for product tankers fell by 8% week-on-week to $22,007 per day, due to financial market volatility affecting sentiment in the MR segment.
The escalating tensions between the United States and China disrupt the VLGC market
In the VLGC market, rates have experienced a significant correction due to escalating trade tensions between the United States and China. Earnings on the Ras Tanura–Chiba route plummeted by 62% week-on-week, reaching $14,590 per day, the lowest level since September 2024 and the steepest weekly decline in over a decade. Although spot rates are currently low, this appears to be a short-term shock. The market is expected to stabilize once the uncertainty surrounding the trade war diminishes.
The car carrier market recovers after challenging months
In the PCTC segment, global car sales bounced back in March, rising by 8% compared to the previous year, driven by strong demand in the UK, Japan, and the United States. This marks a welcome return to growth after several months of slowdown, although March is typically a strong month seasonally. Encouragingly, the United States has also suggested potential flexibility on vehicle tariffs, which could support trade flows and sentiment in the car carrier market moving forward.
Source: Clarksons