Regional cargo activity from Korea and Singapore continues to provide baseline employment, while longer-haul demand from the Americas into Asia is gradually tightening prompt tonnage.
Commentary
Regional cargo activity from Korea and Singapore continues to provide baseline employment, while longer-haul demand from the Americas into Asia is gradually tightening prompt tonnage.
OVERVIEW
The tanker market remains heavily influenced by ongoing geopolitical disruptions in the Middle East, particularly the continued uncertainty surrounding the Strait of Hormuz.
Ballasting vessels are unlikely to enter via the Strait of Hormuz early, they prefer to enter at the last minute due to the risk of becoming trapped if hostilities resume. Many shipowners are incurring significant losses, with VLCCs reportedly earning up to USD 200,000 per day still stranded within the Strait of Hormuz amid ongoing uncertainty. At the same time, several trading houses that sold or purchased cargoes on a CFR basis appear to have taken misaligned freight hedges or directional positions, resulting in substantial mark-to-market losses as market conditions moved sharply against them.
The chart shows diesel prices in India stays the lowest and fairly stable, largely due to government price management, lower tax components, and access to discounted crude imports.
Japan remains relatively flat as refiners rely on long-term crude contracts, government-influenced pricing guidance, and gradual retail price adjustments that smooth short-term market swings.
Germany and France rising sharply into early 2026, reflecting strong pass-through of higher crude costs, tighter supply exposure, and higher tax structures.
The United States shows a moderate upward trend supported by rising crude prices but cushioned by ample domestic refining capacity. Brazil trends gradually higher due to partial price liberalization and currency effects, though domestic production helps limit volatility.
At the same time, global oil flows are being reshaped, with cargoes increasingly sourced from alternative regions including the US, ARA, and West of Suez to meet Asian demand.
Clean tanker fundamentals remain supported by longer tonne-mile movements, as refiners in Asia continue to diversify supply sources. Recent cargo movements show increased flows from the Americas into Australia, Japan, and Singapore, reflecting tightening regional supply and shifting arbitrage economics. Several MR cargoes were observed moving from US Gulf and US West Coast toward Asia-Pacific destinations, highlighting the growing inter-basin demand structure.
Meanwhile, Baltic clean tanker indices moved modestly higher, with LR2 MEG–Japan (TC1) rising to ws531.67 and LR1 MEG–Japan (TC5) firming to ws555.00. Regional Asia routes remained relatively stable, with TC7 Singapore–Australia holding around ws320, indicating a balanced but supported market tone.
Iran’s strikes on Persian Gulf also raising the prospect of record prices for the metal used in everything from airplanes to food packaging and solar panels. Aluminium plants are threatening to send a fragile market into crisis.
MR MARKET OUTLOOK FOR THE NEXT 5-7 DAYS
The MR market in the Far East is expected to remain range-bound with a firmer undertone. Regional cargo activity from Korea and Singapore continues to provide baseline employment, while longer-haul demand from the Americas into Asia is gradually tightening prompt tonnage. This shift is increasing tonne-mile demand and helping owners maintain rate expectations.
At the same time, ongoing geopolitical risks and uncertainty over Hormuz transits are likely to limit vessel repositioning into the Middle East, tightening availability in East of Suez. This dynamic, combined with continued Australian and Pacific demand, should provide underlying support to Korea–Australia and Singapore–Australia routes.
Overall, the MR market is expected to trade sideways to slightly firmer, supported by:
Limited prompt tonnage in North Asia
Longer-haul cargo flows from West of Suez
Continued geopolitical uncertainty
Elevated bunker costs supporting owner sentiment
SMALL TANKERS MARKET UPDATES
The regional market remains generally soft with subdued cargo visibility, though freight continues to hold at relatively elevated levels. In Southeast Asia, Intra-SEA activity is weak—particularly for petrochemicals—with CPP providing limited support, while growing vessel supply has made replacement tonnage readily available and pushed owners to fix opportunistically forward.
Northbound conditions remain challenging, with prompt vessels struggling to secure cargoes and some ballasting back from India due to lack of viable employment, although slight improvement is seen westbound with palm and biofuel movements lending some support.
In the Far East, Intra-FEAST appears stable on the surface but is softening underneath due to production cutbacks and reduced aromatics flows, while prompt tonnage remains limited and freight elevated amid cost pressures and rate resistance. Southbound activity has eased following the ceasefire, with weaker demand for blending components and methanol-related cargoes, while westbound flows remain focused on core chemicals into India with freight holding firm due to poor backhaul prospects.
REPORTED FIXTURES
VESSEL
SIZE
GRADE
L/C
LOAD
DISCHARGE
FREIGHT
CHTRS
VNR
10
MTBE
24-28 Apr
SOUTH CHINA
STRAITS
370K
CNR
VNR
11
PALMS
15-20 Apr
STRAITS
KOREA
MIS $40S
CNR
BW WREN
35
LCO
17-Apr
KOREA
SPORE
750K
BP
GOLDEN VOYAGER
35
CPP
19-Apr
KOREA
OZ
WS325
AMPOL
SEA RUNNER
35
CPP
20-Apr
SPORE
COLOMBO
870K
EPDESA
FOREVER CONFIDENCE
35
CPP
24-Apr
MUARA
OZ
WS337.5
BP
SELETAR SPIRIT
90
ULSD
22-Apr
SIKKA
SPORE
WS275
RELIANCE
BUNKER PRICE UPDATES
Bunker prices softened during the week across major hubs. Singapore VLSFO declined to approximately USD 765.5/mt, while Fujairah dropped to USD 754.0/mt. MGO also eased significantly, with Singapore falling to USD 1576.5/mt. The decline reflects easing crude volatility following partial stabilization in Middle East tensions, though absolute price levels remain elevated and continue to support freight sentiment.
News & Commentaries
Regional cargo activity from Korea and Singapore continues to provide baseline employment, while longer-haul demand from the Americas into Asia is gradually tightening prompt tonnage.
The tanker market remains heavily influenced by ongoing geopolitical disruptions in the Middle East, particularly the continued uncertainty surrounding the Strait of Hormuz.
Ballasting vessels are unlikely to enter via the Strait of Hormuz early, they prefer to enter at the last minute due to the risk of becoming trapped if hostilities resume. Many shipowners are incurring significant losses, with VLCCs reportedly earning up to USD 200,000 per day still stranded within the Strait of Hormuz amid ongoing uncertainty. At the same time, several trading houses that sold or purchased cargoes on a CFR basis appear to have taken misaligned freight hedges or directional positions, resulting in substantial mark-to-market losses as market conditions moved sharply against them.
The chart shows diesel prices in India stays the lowest and fairly stable, largely due to government price management, lower tax components, and access to discounted crude imports.
Japan remains relatively flat as refiners rely on long-term crude contracts, government-influenced pricing guidance, and gradual retail price adjustments that smooth short-term market swings.
Germany and France rising sharply into early 2026, reflecting strong pass-through of higher crude costs, tighter supply exposure, and higher tax structures.
The United States shows a moderate upward trend supported by rising crude prices but cushioned by ample domestic refining capacity. Brazil trends gradually higher due to partial price liberalization and currency effects, though domestic production helps limit volatility.
At the same time, global oil flows are being reshaped, with cargoes increasingly sourced from alternative regions including the US, ARA, and West of Suez to meet Asian demand.
Clean tanker fundamentals remain supported by longer tonne-mile movements, as refiners in Asia continue to diversify supply sources. Recent cargo movements show increased flows from the Americas into Australia, Japan, and Singapore, reflecting tightening regional supply and shifting arbitrage economics. Several MR cargoes were observed moving from US Gulf and US West Coast toward Asia-Pacific destinations, highlighting the growing inter-basin demand structure.
Meanwhile, Baltic clean tanker indices moved modestly higher, with LR2 MEG–Japan (TC1) rising to ws531.67 and LR1 MEG–Japan (TC5) firming to ws555.00. Regional Asia routes remained relatively stable, with TC7 Singapore–Australia holding around ws320, indicating a balanced but supported market tone.
Iran’s strikes on Persian Gulf also raising the prospect of record prices for the metal used in everything from airplanes to food packaging and solar panels. Aluminium plants are threatening to send a fragile market into crisis.
The MR market in the Far East is expected to remain range-bound with a firmer undertone. Regional cargo activity from Korea and Singapore continues to provide baseline employment, while longer-haul demand from the Americas into Asia is gradually tightening prompt tonnage. This shift is increasing tonne-mile demand and helping owners maintain rate expectations.
At the same time, ongoing geopolitical risks and uncertainty over Hormuz transits are likely to limit vessel repositioning into the Middle East, tightening availability in East of Suez. This dynamic, combined with continued Australian and Pacific demand, should provide underlying support to Korea–Australia and Singapore–Australia routes.
Overall, the MR market is expected to trade sideways to slightly firmer, supported by:
The regional market remains generally soft with subdued cargo visibility, though freight continues to hold at relatively elevated levels. In Southeast Asia, Intra-SEA activity is weak—particularly for petrochemicals—with CPP providing limited support, while growing vessel supply has made replacement tonnage readily available and pushed owners to fix opportunistically forward.
Northbound conditions remain challenging, with prompt vessels struggling to secure cargoes and some ballasting back from India due to lack of viable employment, although slight improvement is seen westbound with palm and biofuel movements lending some support.
In the Far East, Intra-FEAST appears stable on the surface but is softening underneath due to production cutbacks and reduced aromatics flows, while prompt tonnage remains limited and freight elevated amid cost pressures and rate resistance. Southbound activity has eased following the ceasefire, with weaker demand for blending components and methanol-related cargoes, while westbound flows remain focused on core chemicals into India with freight holding firm due to poor backhaul prospects.
Bunker prices softened during the week across major hubs. Singapore VLSFO declined to approximately USD 765.5/mt, while Fujairah dropped to USD 754.0/mt. MGO also eased significantly, with Singapore falling to USD 1576.5/mt. The decline reflects easing crude volatility following partial stabilization in Middle East tensions, though absolute price levels remain elevated and continue to support freight sentiment.