September 29, 2026
Geopolitical disruptions and trade inefficiencies drive spot tanker rates to record highs.
A series of geopolitical events impacting vessel transits and oil flows, most notably through the Strait of Hormuz and the Red Sea, have combined to create longer voyage distances and increased trade inefficiency in recent months, culminating in an increase in spot tanker rates to record highs during September.
Crude oil exports from the Middle East Gulf have undergone a recovery, despite ongoing attacks against ships, as several producers have taken to shuttling crude on a dedicated fleet of VLCCs through the Strait of Hormuz for ship-to-ship (STS) transfer in the Gulf of Oman. This soaks up a large number of ships and also generates added inefficiencies such as extended waiting times, helping to boost VLCC spot rates to record highs.
Meanwhile, renewed Houthi attacks on Saudi Arabian shipping and oil infrastructure in the Red Sea has forced exports from the port of Yanbu north through the Suez Canal / SUMED pipeline rather than south via the Bab el-Mandeb Strait, further adding to voyage distances.
Finally, strong Asian refinery demand is keeping the arbitrage for long-haul movements from the Atlantic to Pacific wide open, creating additional tanker tonne-mile demand. When combined, the net impact of a growing shuttle / STS trade from the Middle East Gulf, disruptions and diversions in the Red Sea, and continued demand for Atlantic barrels in Asia has led to spot tanker rates reaching record highs in September.
Looking ahead, geopolitical developments will remain the primary driver of tanker markets in the near-term, with future rate direction hinging on the outcome of key geopolitical factors. However, ongoing trade inefficiencies and longer voyage distances are expected to keep spot tanker rates well supported into Q4-26.
Watch Christian Waldegrave‘s 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.