U.S. oil tariffs shift trade to extended routes
Aframax earnings continue to rise, this time due to a significant shift in Canadian crude exports. Recent U.S. tariffs on Canadian oil have redirected barrels from the Gulf of Mexico to Europe, where buyers in the UK and the Netherlands have sought alternative supplies.
This redeployment has been a real success for Aframax owners. Over 75% of these transatlantic and intra-European shipments are handled by Aframax vessels, leading to a significant increase in spot rates. North Sea Aframax rates alone surged by nearly 24% in one week, with earnings reaching almost $47,000 per day.
Positive outlook for the second quarter as the supply of tankers remains limited
With a limited tonnage list both in the Mediterranean and Northwestern Europe—and few ships coming from the United States—charterers are competing for the available vessels. As long as Canadian flows continue heading east, the Aframax segment appears well-positioned to remain strong until the second quarter.
Source: Clarksons and Tradewinds