Aframax: Demand & Supply Trends

The Aframax sector has come out on top as having the largest percentage rise in ton miles over fleet growth in the past 3 months. Aframax charter rates have more than quadrupled in the same time frame, starting July at approximately 9k USD and starting October at over 40k USD. A contributing factor to this sharp increase is likely to be the very recent U.S. sanctions that were imposed on two units of Chinese shipping company COSCO at the end of September, squeezing Aframax supply further.

Trade data is calculated at the individual vessel stoppage and laden / ballast journey level on a real-time basis. Demand is measured in Cargo Miles using the calculation of distance travelled x cargo quantity (MT, TEU or CBM) in billions per nautical mile.

Month on month percentage growth is calculated for both Cargo Miles and Number of Vessels for each vessel subtype. These are then averaged across the past 3 months to give a 3 month percentage growth.

Source: Vessel Value g� h�