Tight oil tanker supply prompts shippers towards longer time charters

Chamber of Shipping > Blog > News > International > Tight oil tanker supply prompts shippers towards longer time charters

Global disruptions have led to increased oil tanker chartering rates, pushing shippers towards longer-term charters. The redirection of Russian oil to Asia due to European sanctions, vessel attacks in the Red Sea, and low water levels in the Panama Canal have extended sailing times and escalated costs. These factors have contributed to a significant rise in chartering rates, with Aframax vessels now costing about $49,500 per day, up from $39,000 five months ago. To mitigate these challenges, companies like Gunvor Group’s Clearlake Shipping are locking in vessels for longer periods to protect against price volatility and ensure availability. The oil shipping industry is also exploring building new vessels, with an expected addition of around 100 Aframaxes and 25 Very Large Crude Carriers in the coming years.

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