Ready For A Rebound
August 22nd, 2025:VLCCs are well positioned to lead a tanker market upturn
Throughout its history, the tanker market has been volatile and unpredictable. Many fortunes have been made and lost since private owners took control of the tanker spot market in the 1970s. Boom and bust cycles in our markets were usually driven by the largest vessels in the fleet, the Very Large Crude Carriers or VLCCs. Their size, and the economies of scale they offered to charterers, ideally positioned VLCCs to take advantage of trade flow disruptions and geopolitical unrest. However, this was not the case in 2022, after the Russian invasion of Ukraine. The changes in trade flows that were caused by this conflict primarily benefited Aframaxes and Suezmaxes (and product carriers), while VLCCs languished relative to their smaller brethren. However, there are some indications that the situation could change in the future and that order will be restored: VLCCs will be the top dog again.
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