January 26, 2024
Mid-size tanker spot rates remain firm, though volatile, while positive long-term supply fundamentals remain intact.
2023 was one the of the best years on record for Aframax and Suezmax spot rates due to a combination of strong oil supply / demand growth, an increase in average voyage distances, and low fleet growth.
2024 has started off on a strong note with rates being supported by winter market fundamentals and trade disruption due to the recent attacks on shipping in the Red Sea, which have led to some ships avoiding the Red Sea and diverting around the Cape of Good Hope, adding to tanker tonne-mile demand.
Looking ahead, we expect that spot tanker rates will remain firm throughout the year as underlying tanker fundamentals remain supportive, particularly on the fleet supply side with virtually zero tanker fleet growth expected. Geopolitical uncertainty, particularly in the Middle East and in Russia / Ukraine, will likely to add to rate volatility during the course of the year.
Watch Christian Waldegrave‘s monthly tanker market update for more.
Forward Looking Statements
This content contains forward-looking statements which reflect the Company’s current views with respect to certain future events and performance, including statements regarding: tanker market fundamentals, including the balance of supply and demand in the tanker market, and spot tanker charter rates. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in spot market tanker rates; changes in the production of or demand for oil; changes in trading patterns significantly affecting overall vessel tonnage requirements; greater or less than anticipated levels of tanker newbuilding orders or greater or less than expected level of tanker scrapping; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; changes in the typical seasonal variations in tanker charter rates and other factors discussed in Teekay Tankers’ filings from time to time with the United States Securities and Exchange Commission, including its most recent Annual Report on Form 20-F and subsequent Reports on Form 6-K for the quarterly periods ended thereafter. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.