Tanker freight rates explained: crude, products and ton-mile demand
How crude and product tanker freight rates respond to cargo demand, fleet supply, sanctions, routing and ton-mile changes.
Two connected but different markets
Crude tankers and product tankers move different cargo streams and operate across distinct vessel classes and trade patterns. Freight conditions can therefore diverge even when the wider oil market is moving in the same direction.
Ton-mile demand
Shipping demand is a combination of cargo volume and distance. The same quantity of oil can require more vessel capacity when trade routes lengthen, creating additional ton-mile demand without a corresponding rise in underlying consumption.
Fleet supply and disruptions
Newbuild deliveries, scrapping, sanctions, speed, congestion, drydocking and routing changes affect available tonnage. Security events or trade-policy changes can reshape vessel positioning quickly.
What to monitor
Track fixture activity, route-specific assessments, fleet growth, sanctioned-trade exposure, refinery flows and major chokepoints. The Tankers Intelligence File connects those signals with current news.