Special Freight Report: VLCC & Suezmax dirty-to-clean switches: A trend here to stay?
This report focuses on various aspects linked with the recent surge of dirty supertanker clean-ups; ranging from the specifics of the logistics, the profile of the participants, the behaviour of the fleet as well as the impact on freight rate dynamics. The report also aims to provide indications on whether this trend is poised to resume for the weeks to follow.
03 October, 2024
Key report takeaways:
- Clean supertanker voyages slashed LR rates in half, but clean/dirty tanker freight spread widens once again
- Around 1.8 m tonnes/month of in the last 3 months are carried in supertankers, equal to more than 10% of LR global employment
- Growing Middle East CPP exports are shipped on supertankers; Europe (NWE & Med) and WAf being the main destinations
- Voyage types are a mixed bag with STS occurring on both origin and destination side, VLCC cargoes to NWE add 10 more days
- Supertanker CPP voyages include both direct and STS operations; Cargoes on VLCC to NWE add 10 more days than LRs
- Size or age of the main trading houses’ fleets are not a concern in continuing the trend, if economics allow it
- Overall age profile of vessels participating is flexible (up to 15 years old); some operators switch back to dirty after one cargo
- Post clean discharge, Suezmaxes prefer the fuel oil Baltic/NWE-East, or crude WAF-UKC route; VLCCs head for USG/Caribs
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