Fuel and Freight Daily Update - 9/12/25

09/12/2025

All prices reflect end-of-day settlements from September 11th, 2025

Colonial Pipeline Differentials (USGC):

• ULSD 62g (C53): -6.30

• Jet Fuel 54g (C53): -20.25

Clean Tankers – The U.S. Gulf remains oversupplied with clean tanker tonnage, leaving owners under pressure. While steady exports into Latin America and the East Coast continue to provide outlets, the heavy vessel list is weighing on sentiment. Risk premiums tied to delays and geopolitical uncertainty remain embedded, cushioning rates from sharper declines. Overall tone remains soft but balanced.

Crude Tankers – VLCCs continue to avoid the Red Sea and Hormuz, routing instead via the Cape of Good Hope. These longer voyages absorb capacity and sustain firmness on Middle East–Asia runs. The Cape detour is now the entrenched “default,” providing structural support to crude freight even as broader demand signals remain muted.

LNG Shipping – LNG freight markets stay firm with steady Atlantic Basin demand and limited vessel availability. Seasonal weather risks and cautious routing strategies are stretching voyages, keeping spot supply thin. Rates remain elevated, with the market vulnerable to upside should demand pick up unexpectedly.

Routing & Geopolitics – No major shifts reported. Across clean, crude, and LNG markets, vessels continue bypassing high-risk chokepoints, extending voyages and reducing effective supply. These inefficiencies are maintaining a pricing floor across freight segments, keeping conditions stable but fragile.

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