Tankers: Sustained momentum across crude segments
The crude tanker market continues to gain strength, with VLCC earnings rising 36% week-on-week to a two-year high of USD 82,200 per day, driven by strong volumes and a tightening vessel supply.
The Suezmax and Aframax segments have also demonstrated strong resilience, supported by firmer sentiment in the Atlantic basin. This positive momentum in the crude oil market is fueling optimism as the sector enters the seasonally stronger fourth quarter.
LPG: Positive sentiment and rising earnings
The VLGC market continued to firm last week, supported by particularly strong activity in the West and constructive sentiment across both the Atlantic and Pacific basins. Market fundamentals remain favorable heading into the fourth quarter, underpinned by steady demand and robust tonne-mile support. However, anticipated fleet growth in 2026 and 2027 may place pressure on the current strong earnings within the segment.
PCTC: Slight softening in rates, demand remains stable
Time-charter rates for car carriers eased slightly, while underlying demand fundamentals remain strong, with high fleet utilization and long-term prospects supported by resilient automotive trade flows. Vehicle exports from China rose by approximately 18% in the first half of 2025, with new energy vehicles accounting for nearly 41% of that growth, highlighting increased export diversification and robust global demand for auto shipping.
Geopolitics: OPEC+ production and oil flows
OPEC+ approved another production increase for October, bringing total restored output since April to over 2 million barrels per day. As seasonal domestic demand declines, Middle East seaborne exports are set to rise further, providing ongoing support for tanker demand. At the same time, global inventories are expected to build in the fourth quarter, raising the prospect of increased use of floating storage—a near-term positive for sector earnings.
Source: Clarksons Research