Strengthening in Key Segments – Challenging Week for Other Sectors
The tanker market experienced varied developments over the past week. In the crude segment, limited activity led to a slight decline in rates, with average earnings now around USD 38,000 per day. However, with the anticipated short-term increase in production by OPEC+, we expect this additional crude supply to boost earnings in the coming months.
Product tanker rates rise by 16%
Conversely, the product tanker market experienced a notable increase. Limited position lists in key regions helped boost average earnings by 16% week-on-week, reaching USD 25,438 per day – the highest level in two months.
The LPG market remains steady following the tariff relaxation
The LPG market continues to show strength, supported by the recent announcement of tariff suspensions. Earnings for VLGCs on the crucial Ras Tanura–Chiba route remain strong at USD 52,609 per day, which is 25% higher than the 2024 annual average. As highlighted in last week's update, we expect the VLGC market to maintain its stability, with new U.S. export capacities becoming operational and a probable rise in freight volumes in the third quarter, thus sustaining earnings throughout and beyond the summer.
The PCTC segment gains momentum
In the PCTC segment, momentum is improving. In April, China's maritime vehicle exports increased by over 14% compared to the previous year, reaching approximately 566,000 units—a new record. Exports to Europe rose by nearly 9% year-on-year, driven by strong demand for hybrid vehicles. Growth was observed in all major regions except Russia, where export volumes fell by about 36% compared to the previous year.
Source: Clarksons