{"id":96514,"date":"2026-06-04T00:00:00","date_gmt":"2026-06-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/?p=96514"},"modified":"2026-06-04T05:45:07","modified_gmt":"2026-06-04T05:45:07","slug":"higher-rates-cant-hide-weaker-tanker-demand","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/","title":{"rendered":"Higher rates can\u2019t hide weaker tanker demand"},"content":{"rendered":"<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong> Regional disruptions are redrawing tanker trade flows<\/strong> \u2014 creating longer, more complex routes that boost ton-mile demand and support freight rates. Oil-on-water volumes \u2014 a key measure of tanker requirements \u2014 fell to 1.07 bn barrels in April from 1.24 bn barrels in January, according to <a href=\"https:\/\/www.spglobal.com\/energy\/en\/news-research\/latest-news\/refined-products\/052926-strait-of-hormuz-closure-threatens-extended-decline-in-global-tanker-demand\" target=\"_blank\" rel=\"noopener\">S&amp;P Global Commodities data<\/a>.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Alternative routes are cushioning the blow but not replacing lost volumes:<\/strong> Tanker operators indicate that certain displaced Gulf exports have been rerouted onto longer-haul routes, including higher Saudi crude shipments from Yanbu, the release of Russian barrels previously stored at sea, and inventory drawdowns. These shifts have supported ton-mile demand and freight earnings, but they have not come close to offsetting the collapse in flows through Hormuz.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Freight rates remain elevated, but the underlying market is weakening. <\/strong>The Platts VLCC benchmark stood at USD 278.7k per day by the end of May, well above the USD 75.9k per day average since the index launched in March 2024.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Could trade inefficiencies outlast the conflict? They might. <\/strong>The industry is likely to embed some of the new trade patterns even after hostilities end, Frontline CEO Lars Barstad notes. Yet the longer disruptions drag on, the more the market's underlying weakness comes into focus, as excess vessel supply continues to weigh on tanker demand.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Base <\/strong><strong>case versus worst case: <\/strong>Bimco\u2019s worst-case scenario \u2014 which assumes disruptions continue through 2026 and 2027 \u2014 projects that crude tanker demand could contract by 11-13% next year and by a further 8.5-10.5% in 2027. Even under its base case, which assumes the strait reopens by the end of this month, crude tanker demand is expected to fall by 4-6% in 2026 before recovering in 2027.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Product tankers face an even steeper challenge:<\/strong> Fleet growth continues to outpace cargo demand, leaving the segment particularly exposed. Higher freight rates may provide temporary support, but they are unlikely to offset a structurally weaker supply-demand balance.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Why this matters:<\/strong> Oil-on-water metrics measure the volume of crude and refined products currently floating aboard tankers, whether in transit to buyers or held offshore in storage. More barrels on the water typically mean more ships are required to move them. The recent decline suggests that, despite the longer trade routes and elevated freight rates created by the disruption, fewer barrels are actually moving through the global tanker system \u2014 a warning sign for vessel demand if the disruptions persist.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\">\n","protected":false},"excerpt":{"rendered":"<p>Higher freight rates are masking a weaker tanker market as disruptions continue to reduce global seaborne oil volumes<\/p>\n","protected":false},"author":1,"featured_media":96515,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[56],"tags":[17,55,123],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-96514","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-logistics-in-the-news","tag-enterprise-logistics","tag-logistics-in-the-news","tag-shipping-maritime","wpautop","entry"],"acf":{"mongo_id":"1312c3b6-1389-4b06-921d-d1ff9cf3cf9d","order":"8","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/6\/292.jpg","photo_position":"above","homepage_title":"","full_issue_title":"More sea, less oil to see?","related_issue":[96501],"teaser":"Higher freight rates are masking a weaker tanker market as disruptions continue to reduce global seaborne oil volumes","photo_link":"","related_sponsor":"","voice_url":"","en_translation_ref_id":"","section_story_id":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Higher rates can\u2019t hide weaker tanker demand - Logistics<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Higher rates can\u2019t hide weaker tanker demand\" \/>\n<meta property=\"og:description\" content=\"Higher freight rates are masking a weaker tanker market as disruptions continue to reduce global seaborne oil volumes\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/\" \/>\n<meta property=\"og:site_name\" content=\"Logistics\" \/>\n<meta property=\"article:published_time\" content=\"2026-06-04T00:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-06-04T05:45:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?fit=%2C&ssl=1\" \/><meta property=\"og:image\" content=\"https:\/\/ent.news\/2026\/6\/292.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1\" \/>\n\t<meta property=\"og:image:height\" content=\"1\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/logistics\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Higher rates can\u2019t hide weaker tanker demand\",\"datePublished\":\"2026-06-04T00:00:00+00:00\",\"dateModified\":\"2026-06-04T05:45:07+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/\"},\"wordCount\":393,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/logistics\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?fit=%2C&ssl=1\",\"keywords\":[\"Enterprise Logistics\",\"LOGISTICS IN THE NEWS\",\"SHIPPING + MARITIME\"],\"articleSection\":[\"Logistics in the News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/\",\"url\":\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/\",\"name\":\"Higher rates can\u2019t hide weaker tanker demand - Logistics\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/logistics\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?fit=%2C&ssl=1\",\"datePublished\":\"2026-06-04T00:00:00+00:00\",\"dateModified\":\"2026-06-04T05:45:07+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#primaryimage\",\"url\":\"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?fit=%2C&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?fit=%2C&ssl=1\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/enterpriseam.com\/logistics\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Higher rates can\u2019t hide weaker tanker demand\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/enterpriseam.com\/logistics\/#website\",\"url\":\"https:\/\/enterpriseam.com\/logistics\/\",\"name\":\"Logistics\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/logistics\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/enterpriseam.com\/logistics\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/enterpriseam.com\/logistics\/#organization\",\"name\":\"Logistics\",\"url\":\"https:\/\/enterpriseam.com\/logistics\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/logistics\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ent.news\/internal\/29618.svg\",\"contentUrl\":\"https:\/\/ent.news\/internal\/29618.svg\",\"caption\":\"Logistics\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/logistics\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/enterpriseam.com\/logistics\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\",\"name\":\"enterpriseam admin\",\"sameAs\":[\"http:\/\/enterpriseam.testing.projectsarea.com\"],\"url\":\"https:\/\/enterpriseam.com\/logistics\/author\/enterpriseam\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Higher rates can\u2019t hide weaker tanker demand - Logistics","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/","og_locale":"en_US","og_type":"article","og_title":"Higher rates can\u2019t hide weaker tanker demand","og_description":"Higher freight rates are masking a weaker tanker market as disruptions continue to reduce global seaborne oil volumes","og_url":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/","og_site_name":"Logistics","article_published_time":"2026-06-04T00:00:00+00:00","article_modified_time":"2026-06-04T05:45:07+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?fit=%2C&ssl=1","type":"","width":"","height":""},{"url":"https:\/\/ent.news\/2026\/6\/292.jpg","width":1,"height":1,"type":"image\/jpeg"}],"author":"enterpriseam admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"enterpriseam admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#article","isPartOf":{"@id":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/"},"author":{"name":"enterpriseam admin","@id":"https:\/\/enterpriseam.com\/logistics\/#\/schema\/person\/ca597032db7e4db868359c123cec256d"},"headline":"Higher rates can\u2019t hide weaker tanker demand","datePublished":"2026-06-04T00:00:00+00:00","dateModified":"2026-06-04T05:45:07+00:00","mainEntityOfPage":{"@id":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/"},"wordCount":393,"publisher":{"@id":"https:\/\/enterpriseam.com\/logistics\/#organization"},"image":{"@id":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?fit=%2C&ssl=1","keywords":["Enterprise Logistics","LOGISTICS IN THE NEWS","SHIPPING + MARITIME"],"articleSection":["Logistics in the News"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/","url":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/","name":"Higher rates can\u2019t hide weaker tanker demand - Logistics","isPartOf":{"@id":"https:\/\/enterpriseam.com\/logistics\/#website"},"primaryImageOfPage":{"@id":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#primaryimage"},"image":{"@id":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?fit=%2C&ssl=1","datePublished":"2026-06-04T00:00:00+00:00","dateModified":"2026-06-04T05:45:07+00:00","breadcrumb":{"@id":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#primaryimage","url":"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?fit=%2C&ssl=1","contentUrl":"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?fit=%2C&ssl=1"},{"@type":"BreadcrumbList","@id":"https:\/\/enterpriseam.com\/logistics\/2026\/06\/04\/higher-rates-cant-hide-weaker-tanker-demand\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/enterpriseam.com\/logistics\/"},{"@type":"ListItem","position":2,"name":"Higher rates can\u2019t hide weaker tanker demand"}]},{"@type":"WebSite","@id":"https:\/\/enterpriseam.com\/logistics\/#website","url":"https:\/\/enterpriseam.com\/logistics\/","name":"Logistics","description":"","publisher":{"@id":"https:\/\/enterpriseam.com\/logistics\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/enterpriseam.com\/logistics\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/enterpriseam.com\/logistics\/#organization","name":"Logistics","url":"https:\/\/enterpriseam.com\/logistics\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/logistics\/#\/schema\/logo\/image\/","url":"https:\/\/ent.news\/internal\/29618.svg","contentUrl":"https:\/\/ent.news\/internal\/29618.svg","caption":"Logistics"},"image":{"@id":"https:\/\/enterpriseam.com\/logistics\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/enterpriseam.com\/logistics\/#\/schema\/person\/ca597032db7e4db868359c123cec256d","name":"enterpriseam admin","sameAs":["http:\/\/enterpriseam.testing.projectsarea.com"],"url":"https:\/\/enterpriseam.com\/logistics\/author\/enterpriseam\/"}]}},"featured_image_src":"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?resize=600%2C400&ssl=1","featured_image_src_square":"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?resize=600%2C600&ssl=1","author_info":{"display_name":"enterpriseam admin","author_link":"https:\/\/enterpriseam.com\/logistics\/author\/enterpriseam\/"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/ent.news\/2026\/6\/292.jpg?fit=%2C&ssl=1","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/posts\/96514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/comments?post=96514"}],"version-history":[{"count":2,"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/posts\/96514\/revisions"}],"predecessor-version":[{"id":96552,"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/posts\/96514\/revisions\/96552"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/issue\/96501"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/media\/96515"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/media?parent=96514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/categories?post=96514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/tags?post=96514"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/brand?post=96514"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/logistics\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=96514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}