LPG and PCTC Remain Steady – Ongoing U.S. Incentives
This week, tanker rates experienced a widespread downward pressure, with average weighted earnings dropping by 8% from the previous week to reach 32,585 USD/day. This decline is mainly attributed to a decrease in chartering activity in the crude and product segments.
For context, a modern Suezmax equipped with scrubbers is currently earning around 52,000 USD/day, down from the low 60,000s USD of last week, according to Fearnleys. Despite this decrease, earnings remain at high levels.
Upcoming incentives for vehicle production in the United States – maritime transport could benefit
The LPG market remained stable, with the benchmark Houston-Chiba route for VLGCs trading at 38,400 USD/day, consistent with last week's levels.
In the PCTC market, the U.S. government has announced changes to automobile import tariffs to promote domestic vehicle production. Under the new rules, automakers manufacturing vehicles in the United States will receive reduced tariffs based on the proportion of components sourced from the U.S. or USMCA, a measure that could bolster domestic assembly and, consequently, long-term demand for vehicle transport.
Source: Clarksons, Fearnleys