WAF-UKC Suezmax freight hits over three-year high amid soaring VLCC rates

The West African Suezmax segment has seen freight rates reach their highest levels since November 2022, with market sources pointing to support from a historically firm VLCC market, tight tonnage supply, strong demand levels in the Americas and weather-induced delays in the Atlantic and Mediterranean.

Platts, part of S&P Global Energy, assessed freight on the benchmark 130,000 metric ton WAF-UK/Continent route up w12.5 day-over-day at w180 on Feb. 25. In $/mt terms, freight for the route stood at $30.98/mt, the highest level for the assessment since Nov. 28, 2022.

Suezmax freight rates have been firm since the onset of the fourth quarter of 2025, although they have been outshone by a surging VLCC market, with rates on the 260,000 mt WAF-East route reaching $61.09/mt on Feb. 25, their highest level since April 2020.

However, these prohibitive VLCC rates have led charterers to split their cargoes in half and look to ship them on Suezmaxes instead, boosting demand for the global Suezmax market.

"It's super tight for WAF at the moment, with, 20 free-of-cargo Suezmaxes opening up next week, when it's usually more like 40," a London-based Suezmax broker said. "We're seeing lots of VLCC splits into Suezmaxes in the [Persian Gulf], so there are fewer ballasters going West, and there have been port delays in the Mediterranean."

The same broker noted he had observed the same phenomenon taking place in West Africa, with demand for Suezmax stems discharging in Asia rising in recent weeks. These long-haul voyages have an outsized impact on ton-mile demand as they remove ships from the available tonnage pool for longer periods of time, therefore boosting rates even further, the broker added.

"The Suezmaxes had to follow the VLCCs, and it's interesting to see how Sinokor's [fleet consolidation] is affecting the market - as long they can support this idea and earn money, rates will stay high," a Greece-based shipowner said. "There's also been an increase in Suezmax demand from Brazil and the US Gulf, maybe due to VLCC splits, alongside two-week weather delays in the Atlantic, and as long as this geopolitical turbulence continues, we will continue to see crazy rates."

Firm near-term outlook

Sources with expertise in the Suezmax market said that the bullish sentiment witnessed in recent days shows no signs of letting up, and therefore expect rates to continue to firm in the short term.

"We were expecting the market to firm given the situation, but I don't know how long this will continue - it could keep firming for the foreseeable future, and if activity doesn't slow down, it's going to be even higher," a Europe-based Suezmax broker said.

"It's hard to know where it's going to end up – it's a case of throw a dart and see where it lands on the board," the London-based Suezmax broker said. "But I think it could well go to w200 [for a WAF-UKC Suezmax voyage]."

Looking further ahead, the same sources said they still expected the market to cool down once laycans begin approaching the summer months, although they said rates were likely to remain elevated compared to historical levels.

"I think things will slow down during the summer, as they usually but I don't think the market will come down by as much as people think," the London-based Suezmax broker said.

"It might be softer during summer, but we've seen firm summers in the past, so there's no guarantee," the Greece-based owner said.