VLCC: From Pricing Risk to Pricing Utilisation

VLCC freight rates on Middle East Gulf to China routes have declined sharply from post-conflict highs as transit activity through the Strait of Hormuz recovers following the US-Iran MOU, with over 308 recorded transits since June 15. Vessel availability in the Middle East Gulf is increasing as owners reposition tonnage back to the region, gradually unwinding the fleet dislocations and risk premiums that had elevated global freight rates during the disruption.