Despite encouraging LNG pricing fundamentals, freight rates could plateau on the back of thinning US exports, reduction in tonne-miles and an influx of LNG carrier tonnage.
Declining volumes towards the Far East limits tanker demand, but long-haul voyages to India keep VLCC and Suezmax tanker utilisation in balance.
US Gulf Coast imports of fuel oil and VGO are climbing as the region’s refiners respond to rising US gasoline demand.
Saudi Arabia's imports of dirty petroleum products are strengthening as the country gears up for peak summer demand.
Explore Q1 2021 freight market update based on Vortexa data.
Vortexa outlines how the decline in US fuel oil and dirty feedstocks exports has impacted buyers in Latin America, Caribbean and Asia.
Latin American diesel imports via ship-to-ship transfers (STS) off west Africa are on track to hit a multiyear high of around 230,000 mt in March, up from less than 90,000 mt in February.
A breakdown of the impact on oil, freight and flows in the aftermath of the Suez Canal blockage.
As naphtha continues to find outlets towards the East, LR2 utilisation is on the rise in March, helping resurrect rates from multi-year lows. But widening LPG discounts to naphtha are expected to put a lid on Asia's naphtha imports in the coming months.
Explore freight markets forecast for 2021 based on Vortexa data.
LR tanker rates are rallying higher following a strong month of October-loading naphtha exports from the Mediterranean and the Mideast Gulf heading East, with the momentum set to continue in November.
Utilisation rates for Very Large Crude Carriers (VLCC) fell to 44% in August, their lowest level this year following stymied global demand recovery for crude and a significant loss of cargoes compared to 2019 levels, according to Vortexa data.
Saudi Arabia's fuel oil imports typically rise towards the peak power demand season in summer, but early indications so far in Q3 2020 point to a more subdued seasonal uptick compared with prior years.