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A Brief Comment Regarding Shipping Markets and Red Sea Disruptions

August 7, 2024 1 min
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A Brief Comment Regarding Shipping Markets and Red Sea Disruptions

Brief market comment on Middle East hostilities and shipping impact. Expect greater Suez Canal and Gulf of Hormuz disruption. More VLCCs likely taken for floating storage. Spot rates expected to increase significantly despite apparent demand weakness.

Hostilities in the Middle East are likely to lead to even greater disruption of traffic on the Suez Canal and likely in the Gulf of Hormuz.

Expect to see more VLCCs taken in on floating storage to move crude out of the Gulf of Hormuz and away from hostilities while the risk is lower.

Spot rates likely to increase significantly even in the face of apparent demand weakness.

For Marsoft's commentary and an in-depth analysis of the current markets contact one of our offices.

Key Insights

  • Middle East hostilities to increase Suez Canal disruption
  • Gulf of Hormuz traffic likely disrupted
  • More VLCCs expected for floating storage
  • Spot rates to increase despite demand weakness
Red Sea disruptionsSuez CanalGulf of HormuzVLCC floating storageTanker ratesMiddle East conflict
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