Greek Aframax-class oil tanker owner Performance Shipping said recently it expects disruptions to oil trade flows and constrained fleet growth to continue supporting freight rates.

The shift in trade patterns from the Russian oil trade and disruptions in the Red Sea, resulting in longer-haul tanker voyages and increased tonne-mile demand, continued to support rates in the second quarter of this year in conjunction with limited tanker supply growth, the company said.

Performance Shipping's average time charter equivalent (TCE) rate for the second quarter was $30,970/d, compared with an average $41,868/d for the same period in 2023.

Performance Shipping said it expects rates to remain "firm" and it will continue to balance exposure to short- and medium-term time charter contracts with the spot market. Aframax rates are generally lower globally than in 2022 and 2023, during the peak of disruption from the G7+ embargo on Russian oil imports, but remain above long-term historical averages.

Source: Argusmedia