VLCC & Suezmax Clean Switches Report

Special Freight Report: VLCC & Suezmax dirty-to-clean switches: A trend here to stay?

Clean supertanker voyages slashed LR rates in half, but clean/dirty tanker freight spread widens once again
Around 1.8 m tonnes/month of in the last 3 months are carried in supertankers, equal to more than 10% of LR global employment
Growing Middle East CPP exports are shipped on supertankers; Europe (NWE & Med) and WAf being the main destinations
Voyage types are a mixed bag with STS occurring on both origin and destination side, VLCC cargoes to NWE add 10 more days
Supertanker CPP voyages include both direct and STS operations; Cargoes on VLCC to NWE add 10 more days than LRs
Size or age of the main trading houses’ fleets are not a concern in continuing the trend, if economics allow it
Overall age profile of vessels participating is flexible (up to 15 years old); some operators switch back to dirty after one cargo
Post clean discharge, Suezmaxes prefer the fuel oil Baltic/NWE-East, or crude WAF-UKC route; VLCCs head for USG/Caribs

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Clean supertanker voyages slashed LR rates in half, but clean/dirty tanker freight spread widens once again
Around 1.8 m tonnes/month of in the last 3 months are carried in supertankers, equal to more than 10% of LR global employment
Growing Middle East CPP exports are shipped on supertankers; Europe (NWE & Med) and WAf being the main destinations
Voyage types are a mixed bag with STS occurring on both origin and destination side, VLCC cargoes to NWE add 10 more days
Supertanker CPP voyages include both direct and STS operations; Cargoes on VLCC to NWE add 10 more days than LRs
Size or age of the main trading houses’ fleets are not a concern in continuing the trend, if economics allow it
Overall age profile of vessels participating is flexible (up to 15 years old); some operators switch back to dirty after one cargo
Post clean discharge, Suezmaxes prefer the fuel oil Baltic/NWE-East, or crude WAF-UKC route; VLCCs head for USG/Caribs