Firm tanker rates in Q2-24 with expectations of continued strength in both the near and medium term.

Spot tanker rates have remained firm during the second quarter of 2024 with continued positive supply and demand fundamentals and increased tonne-miles due to ongoing geopolitical events.

The Trans Mountain Pipeline expansion (TMX) to Vancouver commenced operations on May 1^st. Given that Vancouver is restricted to Aframax tankers and is relatively far from the main Aframax trade lanes, this development should generate significant tonne-mile demand for Aframaxes as export volumes ramp up over the coming months.

Fleet supply fundamentals continue to look very positive over the medium term, and we believe that the foundations are in place for continued strength in spot tanker rates over the next 2-3 years.

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