Freight rates remain firm across the physical tanker markets, supported by a mix of higher Middle East Gulf (MEG) liftings and new operational frictions. As exports have surged, vessels have been pulled directly into laden employment, thinning the ballast pool and tightening prompt availability.
It’s not about sentiment, it’s real cargo growth and longer voyage patterns, reinforced by new policy-related disruptions that continue to absorb effective capacity.
VLCCs Tighten as OSP Cuts Spur MEG Liftings
VLCCs have strengthened sharply following October’s official selling price (OSP) reductions. These cuts restored regional competitiveness and encouraged Asian refiners to step up purchases ahead of maintenance.
As liftings increased, vessels were drawn into laden employment faster than replacements could arrive, visibly tightening tonnage lists. Charterers found fewer workable candidates and faced longer waiting times at load ports—giving owners greater leverage and pushing TD3 earnings higher.
Seven-day ballast utilization fell in tandem with rising liftings, a clear signal that genuine cargo demand, not mere positioning, was driving the tightening. (....)