Summary

Dirty spot freight rates for very large crude carriers (VLCCs) showed mixed movements in August, while Suezmax and Aframax rates experienced declines on all monitored routes. Softer seasonal demand resulted in a general downward drift in rates.

VLCC spot freight rates enjoyed some strength early in the month before moving lower by the end of August, although with varying movements depending on the region. On the Middle East-to-East route, spot freight rates were unchanged, m-o-m, while rates on the Middle East-to-West route fell 3%, and spot rates on the West Africa-to-Europe route rose 2%, m-o-m.

In the Suezmax market, spot rates experienced a m-o-m decline on all monitored routes, despite a pickup in rates toward the end of the month when the market balance improved. The US Gulf Coast-to-Europe route led declines, falling 23%, m-o-m.

Aframax rates on the Caribbean-to-US East Cost route declined 41%, m-o-m, while the rates on the Cross-Mediterranean (Med) route declined by 11%, impacted by reduced tanker demand from North Africa.

The clean market was weighed down by softening seasonal activity. Spot freight rates showed further m-o-m declines, falling 33% East of Suez and 24% West of Suez.