Fuel and Freight Daily Update - 9/23/25

09/23/2025

All prices reflect end-of-day settlements from September 22nd, 2025

Colonial Pipeline Differentials (USGC):

• ULSD 62g (C55): -5.90

• Jet Fuel 54g (C56): -19.25

Clean Tankers – Tonnage supply in the U.S. Gulf remains long, continuing to weigh on sentiment. Steady export demand into Latin America and the East Coast is keeping rates from sliding further, but owners remain under pressure. Risk premiums tied to delays and geopolitical uncertainty are still baked into freight pricing, cushioning the downside. The market remains soft but balanced.

Crude Tankers – VLCCs continue to avoid the Red Sea and Strait of Hormuz, sticking to the Cape of Good Hope routing. These extended voyages are absorbing global capacity, maintaining structural support for Middle East–Asia long-haul rates. Despite muted demand signals, the Cape detour is still viewed as the “default,” leaving crude freight structurally firm.

LNG Shipping – The LNG freight market stays tight. Atlantic Basin demand is steady, but vessel availability remains constrained due to cautious routing and seasonal weather risks. Spot rates are well supported, with little slack available to absorb incremental demand, keeping the market vulnerable to upside moves.

Routing & Geopolitics – No significant shifts reported. Across clean, crude, and LNG segments, tankers continue rerouting around high-risk chokepoints. These longer voyages reduce effective supply and sustain a pricing floor across freight markets. Overall, conditions remain stable but fragile.

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