Mid-size tanker spot rates remain firm, though volatile, while positive long-term supply fundamentals remain intact.

2023 was one the of the best years on record for Aframax and Suezmax spot rates due to a combination of strong oil supply / demand growth, an increase in average voyage distances, and low fleet growth.

2024 has started off on a strong note with rates being supported by winter market fundamentals and trade disruption due to the recent attacks on shipping in the Red Sea, which have led to some ships avoiding the Red Sea and diverting around the Cape of Good Hope, adding to tanker tonne-mile demand.

Looking ahead, we expect that spot tanker rates will remain firm throughout the year as underlying tanker fundamentals remain supportive, particularly on the fleet supply side with virtually zero tanker fleet growth expected. Geopolitical uncertainty, particularly in the Middle East and in Russia / Ukraine, will likely to add to rate volatility during the course of the year.

Watch Christian Waldegrave‘s monthly tanker market update for more.