Americas Tanker Quarterly Pandemic Effects Intensify Summer Doldrums Into Q3 | Hellenic Shipping News Worldwide

Oil demand destruction, reduced refinery run rates and overall economic slowdowns amid the coronavirus pandemic have intensified the typical slow period in the Americas tanker markets and positioned the third quarter to be bearish, as barrels sold out of floating storage will increase global tonnage avails.

The VLCC, or Very Large Crude Carrier, freight market has been on a downward trajectory since mid-April, when OPEC+ made the decision to implement crude production cuts of 9.7 million b/d over May and June. Freight for the benchmark VLCC 270,000 mt USGC-China route has dropped 68.5% in just over two months from $17 million on April 21 to $5.35 million on July 1

Americas Tanker Quarterly Pandemic Effects Intensify Summer Doldrums Into Q3 | Hellenic Shipping News Worldwide