Tanker charter rates signal freight spike will fade, Vantage says
VNTG•Three-year tanker time charter rates stand at 40%-60% of one-year rates, which Vantage says signals expectations that geopolitically driven freight spikes will fade.
1. Charter rate outlook
Vantage said three-year tanker time charter rates are 40%-60% of one-year rates, signaling expectations that geopolitically driven freight spikes will fade. It said record one-year rates could offer rapid asset payback for prompt-delivery ship purchases or immediate time charter commitments.
2. Spot market benchmarks
Vantage said spot tanker earnings benchmarks overstate broader market conditions because they reflect few Arabian Gulf fixtures rather than the Gulf of Oman majority. It added that MR Asia spot earnings would need to fall more than 60% before threatening returns at three-year time charter rates.
