The crude tanker market strengthened notably this week. VLCC rates moved sharply higher as prompt tonnage became increasingly scarce and security concerns in the Middle East encouraged owners to be more selective with employment. Atlantic routes posted the largest gains, while East of Suez markets also firmed amid tightening vessel availability and substantial off-market activity. The Suezmax sector experienced a strong recovery after a weak start to the week, supported by increased cargo activity and split stems from the VLCC market. As vessels were steadily absorbed, rates rose significantly and owner sentiment improved, particularly in West Africa, Guyana and Brazil. By contrast, Aframax markets remained softer. Both the Mediterranean and North Sea saw limited demand and adequate vessel supply, allowing charterers to exert pressure on rates, though the Mediterranean market appeared to find a floor by the end of the week.
The product tanker market presented a more varied picture. In the Arabian Gulf, both LR2 and LR1 sectors endured a quiet week, with demand retreating as operational inefficiencies linked to ship-to-ship loading disrupted cargo flows. Freight levels eased and owners faced a more competitive environment amid limited enquiry. Southeast Asia moved in the opposite direction, however, as vessels were drawn toward more lucrative North Asian employment, reducing local tonnage availability and forcing charterers to pay higher rates to secure ships. In the Mediterranean, MR activity was relatively healthy but abundant tonnage kept rates largely unchanged, while Handysize vessels benefited from gradually tightening supply and achieved modest gains. Northwest Europe remained challenging, with growing vessel lists and subdued demand weighing on both MR and Handysize sectors, leaving freight levels broadly flat to softer despite support from stronger conditions in the US market.