The Baltic Exchange's VLCC index surpassed USD 1 million/day for the Middle East Gulf to China route, as TCE rates soared to nearly USD 710,000/day. This surge is driven by escalating geopolitical tensions in the Middle East, including attacks on Saudi oil infrastructure, which have raised concerns over supply disruptions, particularly with increased demand anticipated from China.
Meanwhile, the newbuilding market remains robust, with Chinese yards dominating orders and significant price increases observed for Suezmax and VLCC vessels, reflecting strong buyer demand and high earnings across the tanker sector.