The tanker market rose during the month of February, OPEC said in its latest monthly report. Dirty spot freight rates showed gains across almost all monitored routes in February. VLCC rates in particular rose as a fresh round of sanctions resulted in efforts to bring in alternative supplies. VLCC spot freight rates on the Middle East-to-East route jumped 7%, while rates on the West Africa-to-East route rose 5%, m-o-m.
Some of the gains filtered down to the Suezmax market, with spot freight rates on the West Africa-to-USGC route showing a 20% increase, m-o-m. In the Aframax market, cross-Med spot freight rates rose 9%, m-o-m, supported by a tightening of supply of non-sanctioned vessels amid a pick-up in demand. In the clean tanker market, spot freight rates were slightly volatile in February, although ending the month broadly higher, m-o-m. Clean tanker spot freight rates East of Suez rose 2% on average, while West of
Suez rates increased 12% amid limited vessel availability in the region.
Very large crude carriers (VLCC)
Gains were seen across all monitored routes in February as VLCC rates continued to climb from the low levels seen at the end of last year. Gains came as fresh sanctions in January boosted long-haul voyages from alternative supplies. On average, VLCC spot freight rates were up 4%, m-o-m. Y-o-y, VLCC spot rates were down 17% on average.
On the Middle East-to-East route, rates averaged WS62 in February, representing an increase of 7% compared to the previous month, as large buyers of Russian grade sought alternatives following expanded sanctions on vessels carrying Russian crude. Rates were 11% lower, y-o-y. Flows to the West were less affected, and as a result, rates on the Middle East-to-West route were up by a lesser 3%, m-o-m, to average WS36. Compared with the same month in 2024, rates were down 31%.
Spot freight rates on the West Africa-to-East route were up 5%, m-o-m, to average WS63 in February. The rise was driven by increased activities. Compared with the same month in 2024, rates were down 10%.
Suezmax
Spot freight rates for Suezmax vessels enjoyed a strong recovery in February, supported by firm demand in the US Gulf and Mediterranean, where a jump in CPC crude exports thinned availability. Spot rates rose 20%, m-o-m, but were still 19% lower, y-o-y.
On the West Africa-to-USGC route, spot freight rates in February averaged WS83, representing a gain of 20%, m-o-m. Spot rates were 19% lower compared with the same month in 2024. Rates on the USGC-to-Europe route were up 21% to average WS76, as rising VLCC rates provided an incentive to switch to Suezmax vessels. Compared with the same month in 2024, rates were 17% lower.
Aframax
Aframax spot freight rates posted more modest gains, rising 4%, m-o-m, in February. Compared to the same month last year, Aframax spot rates were down 25%. Rates on the Indonesia-to-East route rose 4%, m-o-m, to an average of WS122 in February. Y-o-y, rates on the route were down 22%.
The Caribbean-to-USEC spot freight rates saw the only m-o-m losses across all monitored routes in February, weighed down by lower cargo demand. Rates averaged WS122, a decline of 2%, m-o-m. Compared with the same month last year, rates were down 36%. In contrast, cross-Med spot freight rates were up 9%, m-o-m, to average WS132. Gains were driven by a tighter supply of non-sanctioned vessels and a pickup in demand. Y-o-y, spot rates on the route were still down 20%. Rates on the Med-to-Northwest Europe (NWE) route averaged WS127, representing a rise of 7%, m-o-m. Compared with the same month in 2024, rates were down 18%.
Clean tanker freight rates
Clean spot freight rates were slightly volatile in February, ending the month broadly higher, m-o-m. East of Suez rates rose 2% on average, as lower exports limited gains. West of Suez rates rose 12%, amid limited vessel availability in the region. Compared to the previous year, East of Suez rates were down 48%, while West of Suez rates fell 30%.
Rates on the Middle East-to-East route experienced the only m-o-m declines in February, falling 12% to average WS129. Compared with the same month in 2024, rates were 51% lower. In contrast, clean spot freight rates on the Singapore-to-East route rose 16%, m-o-m. Rates on the route averaged WS169 in February, representing a 46% decline compared with the same month in 2024. Over in the Atlantic basin, clean rates on the NWE-to-USEC route averaged WS158. This was a gain of 10%, m-o-m, but a decline of 28%, y-o-y.
Rates around the Mediterranean also increased. On the Cross-Med route, spot freight rates were up 13%, m-o-m, to average WS191 but were 32% lower, y-o-y. Rates on the Med-toNWE route averaged WS201, representing an increase of 12%, m-o-m, but a loss of 31%, y-o-y.
Source: Hellenic Shipping News Worldwide
