Crude Tanker and VLGC market gathering pace
02/21/2025 Market update

 

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Suezmax rates rise by 25% during a generally strong week

The tanker market experienced a lively week, with VLCC rates on the MEG-China route rising by 10.6% to approximately $50,000 per day, according to Fearnleys. The Suezmax segment also saw a significant week-on-week increase of 25%, reaching $40,000 per day, indicating strong market momentum.

An increase is anticipated for the second half of 2025 with the rise in American exports

In the VLGC market, rates may strengthen after winter due to more robust exports driven by improved arbitrage. However, Fearnleys Securities believes the main driver will emerge in the second half of 2025, when U.S. export capacity increases, potentially pushing rates higher. Thus, despite the current weakness, Fearnleys Securities sees potential for growth as seasonal weakness fades and the market focuses on the latter half of 2025.

Source: Fearnleys Securities, Fearnleys Research




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