Splash 247: VLCCs’ role as tanker bellwether questioned

June 27, 2022

A new report from New York-based Poten & Partners argues that while VLCCs have previously tended to be a leading indicator of where the tanker markets were heading, this changed during the pandemic, a transformation that has become more pronounced following Russia’s invasion of Ukraine four months ago.

The massive OPEC production cut seen during the pandemic led to a significant reduction in long-haul VLCC demand and created significant overcapacity in this segment, according to Poten. The sanctions on Iran and Venezuela, both important VLCC markets, are also hurting this segment more than others, with the rogue fleet eating into their employment opportunities.

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