Freight Stability Persists in Arabian Gulf as Owners Hold Ground Across Clean Segments
Eastbound clean tanker rates from the Middle East Gulf remained broadly steady over the previous week, though a divergence between vessel sizes persisted. LR1 rates to Japan held at WS 180, with a balanced tonnage list and steady enquiry providing a stable backdrop. Charterers continued to pace their programs, while owners remained constructive following several fresh fixtures including placements by TotalEnergies.
In contrast, LR2 levels eased slightly to WS 157.5, slipping by WS 2.5 as excess vessel supply weighed on sentiment. The segment enters mid-December in neutral territory, with LR1 maintaining a firmer stance and LR2 adjusting to looser fundamentals. That said, broader interest from Indian and Asian petrochemical players particularly around “pure origin” Middle Eastern naphtha may offer longer-term support to the eastbound complex if sourcing shifts continue.
The MR market also operated under steady conditions. The Middle East Gulf to East Africa route was unchanged at WS 220, with BP reported to have fixed the MT Great Thita at last-done levels, including a South Africa option at WS 210. Availability across the basin remained tight enough to support owners’ rate ideas, despite a lack of urgency from charterers.
On westbound routes, sentiment was similarly balanced. LR2 lumpsum rates from the Middle East Gulf to the UK Continent eased by $50K to settle at $4.05M, while LR1s gained $100K to reach $3.4M, supported by select enquiry and limited fresh tonnage entering the pool. MR westbound freight held firm around $2.1M, with consistent gasoline and diesel flows into Europe helping to stabilise the segment.
The westbound complex remains underpinned by resilient ton-mile demand and the structural reliance of European buyers on Middle Eastern clean products. With prompt availability contained and market fundamentals aligned, the broader clean tanker market in the Gulf retains a cautiously optimistic outlook for the second half of December.
By Selim Jenhani Shipping & Trading Freight Analyst at Riverlake
