Global tanker freight rates have soared, and the average daily income of ship owners has increased by more than 500 times!

The same has happened in other regions. Shipowners transporting fuel from the Middle East to Japan on a route called TC-5 earn more than $56,000 a day, compared with an average of $61 a day in February, according to data from the Baltic Exchange on Tuesday. Fuel prices on the TC-18 route from the US to Brazil are $37,000 per day, up from $3,800 per day four months ago.

According to the media, S&P Global Commodities Watch analysts Fotios Katsoulas and Krispen Atkinson said that since the conflict began in late February, more and more long-haul-class ships have been used to transport refined fuels. Longer voyages are reducing ships' available capacity and pushing up freight rates, they say.
The last time clean tanker rates reached such high levels was in early 2020, when the global pandemic slashed oil consumption and forced fuel producers to export as much as possible to ease backlogs in storage tanks.
Demand for ships carrying fuel is expected to grow by 6% this year, Anoop Singh, head of tanker research at ship brokerage Braemar ACM, told the media.
"Europe's determination to reduce its reliance on Russian supplies is likely to continue beyond the end of the conflict in Ukraine, which will reroute its trade," Singh said.

The Yan Hai team of Shenwan Hongyuan pointed out that in the context of the reconstruction of the global trade route of refined oil products, the average transportation distance contributed by continental Europe and Mediterranean countries will increase significantly, and the export transportation distance of refined oil products in the Middle East, the United States and the Far East will also increase significantly:" Since 2018, the average transportation distance of refined oil products has increased from 2,800 nautical miles to 3,097 nautical miles in 2021, and is expected to increase to more than 3,340 nautical miles in 2022 and 2023 due to the conflict between Russia and Ukraine."

source:https://www.sofreight.com/