In the past, we have discussed the constant switchovers for LR2s to trade between crude and refined products, and more importantly the impact on tanker supply. The latest statistics have revealed a balanced trend after the rapid increase of dirty-trading LR2s rejoining the CPP fleet in the first half of the year. The pattern could be explained by the Red Sea tension which pushed LR2 tankers to reroute through the Cape of Good Hope and notably increased the average sailing distance for AG>Europe by 34%.
Interestingly, switchovers in smaller vessel classes have also played an important role. Since Jan ...
VLCC and Suezmaxes Carrying CPP Cargoes
Aug. 2, 2024
It is not uncommon for VLCCs and Suezmaxes to carry clean petroleum products, but only for maiden voyages after the tanker delivered from the newbuilding yards. Since 2018, we have captured 20% of newbuilding VLCCs and 62% of Suezmaxes carried at least one CPP cargo from the East to Africa or the European market, significantly taking away demand that could have been carried by LR2s.
This trend in 2024, however, has been mind-blowing. Due to the extremely light orderbook for 2024 (only 1 VLCC and 7 Suezmaxes), we have seen under average number of CPP cargoes carried by newbuilding tankers ...
