Declining volumes towards the Far East limits tanker demand, but long-haul voyages to India keep VLCC and Suezmax tanker utilisation in balance.
Vortexa data shows at least 12mn bbl of crude has been delayed in discharging into key ports along India’s west coast, following the arrival of Cyclone Tauktae.
An ailing crude market has driven charterers to employ newbuild crude tankers for East-to-West of Suez CPP cargo transits, adversely impacting LR2 demand.
Explore Q1 2021 freight market update based on Vortexa data.
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.
The VLCC market share of Johan Sverdrup volumes continues to increase at the expense of Aframax and Suezmax tanker segments, highlighting the demand for longer-haul routes.
ARA region's fuel oil exports have surged amid an influx of Baltic supplies, but limited arbitrage opportunities are proving to be a headwind for the market.
Explore freight markets forecast for 2021 based on Vortexa data.
A second wave of diesel floating storage is now underway, as expectations grow for a further build.
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.
Diesel and jet fuel loadings onto newbuild VLCCs have hit a year-to-date peak in July. Rising cargo volumes aboard VLCCs reinforce the view that east of Suez traders recently become increasingly keen on loading cargoes for longer haul journeys, potentially for floating storage.