Our CEO, Charlie Grey, was featured in Logistics Middle East, where he unpacked an interesting trend the VLCC market is currently facing, particularly in the Middle East.
Charlie noted, “In the first half of 2025, the Middle East Gulf accounted for about 210 VLCC loadings per month out of a global monthly average of around 320 cargoes, excluding sanctioned volumes.”
However, while volumes are up, freight rates have yet to reflect this momentum. Despite OPEC+ signalling the easing of voluntary production cuts, export figures have not yet surged in parallel. This can be attributed to two key factors:
➡️ Domestic summer demand in exporting countries absorbing supply.
➡️ Overproducing nations are adjusting previous output surpluses, temporarily capping net export growth.
As summer ends and domestic consumption eases, more crude is expected to hit global markets. Once overproducers realign with OPEC+ targets, a significant increase in seaborne volumes could follow, potentially driving a VLCC demand rebound.
With market dynamics evolving and the spot market gaining favour among shipowners, we see a structural shift – fixed Time Charters are giving way to more flexible, upside-focused Spot Market plays, backed by commercial tanker pools like our Tankers International VLCC Pool.
Charlie added, “Pools combine the earnings potential of spot trading with professional commercial management, operational efficiency, and risk diversification.”
Read the full article here: https://www.logisticsmiddleeast.com/ports-free-zones/oil-exports-drive-vlcc-demand-surge-as-shipowners-shift-strategy
