December 13, 2024
Another strong year for spot tanker rates in 2024 with a balanced market expected in 2025.
2024 has been another very good year for the spot tanker market with rates well above long-term average levels. However, rates have trended lower in the second half of the year, and the winter market has been below expectation so far as a weak VLCC sector has weighed on rates across the crude tanker space.
Looking ahead to 2025, we expect that spot tanker rates will remain firm throughout the year as underlying tanker fundamentals remain supportive. Oil demand is set to grow to a new all-time high in 2025, and strong growth in non-OPEC+ oil supply should drive the long-haul movement of oil between the Atlantic and Pacific basins leading to higher tanker ton-mile demand. While the pace of newbuild deliveries is set to accelerate in 2025, the fleet is aging, and shipyards have good forward cover for the next three years. As such, we expect fleet growth to remain at manageable levels.
While underlying tanker supply and demand fundamentals continue to look positive, there are a number of geopolitical factors which could impact crude oil trade patterns and fleet utilization during 2025, depending on how they unfold.
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.