Mild market fluctuations as the Russia-Ukraine situation continues to draw focus
For the first time since the conflict began, the prospect of a peace deal is being seriously considered.
Any breakthrough in this direction would have significant implications for energy markets, trade routes, and global supply chains as a whole.
The tanker market is positioning itself ahead of Ukraine peace negotiations
The tanker market is demonstrating robust performance, supported by limited supply and persistent demand for long-haul routes. Oil prices remain stable as participants monitor developments in the Ukraine conflict and the United States imposes new 25% tariffs on Indian exports, the world’s third-largest crude consumer. Since 2022, the redirection of Russian oil and products has shaped market dynamics; a potential shift back towards pre-war trading patterns could impact tonnage demand, tonne-miles, and earnings across key maritime routes.
The VLGC market buoyed by US propane supply and favourable arbitrage opportunities
The VLGC market remains strong, underpinned by high US propane production, stockpiling, and attractive arbitrage conditions for shipments to Asia. These factors continue to support solid earnings, with spot rates for modern eco-vessels reaching twelve-month highs.
The PCTC market is holding firm despite the pressure from newly added fleet capacity
The car carrier sector remains resilient despite a slight correction in charter rates resulting from the influx of new vessels. Strong demand for Asian exports continues to provide significant support, while major players are expanding their fleets to better serve Europe and the Americas.
Sources: Clarksons, Reuters and Tradewinds