Fuel and Freight Daily Update - 9/25/25

09/25/2025

All prices reflect end-of-day settlements from September 24th, 2025

Colonial Pipeline Differentials (USGC):

• ULSD 62g (C56): -6.15

• Jet Fuel 54g (C56): -16.50

Clean Tankers – The U.S. Gulf remains oversupplied with clean tanker tonnage, keeping pressure on owners. Flows into Latin America and the U.S. East Coast continue to provide some outlet, but they remain insufficient to balance the heavy vessel list. Risk premiums tied to delays, congestion, and geopolitical uncertainty are still baked into freight, preventing a sharper slide. Overall sentiment is soft but relatively stable.

Crude Tankers – VLCCs remain committed to the Cape of Good Hope routing, bypassing Hormuz and the Red Sea. These extended voyages continue to absorb global capacity, structurally supporting Middle East–Asia long-haul rates. Despite muted global demand indicators, the Cape detour has become entrenched as the “default” path, providing a pricing floor across the crude segment.

LNG Shipping – The LNG freight market remains tight, with Atlantic Basin demand steady and vessel supply constrained. Seasonal weather risks and risk-averse routing strategies are prolonging voyages, keeping spot supply limited. Rates remain firm, and the market is vulnerable to quick upside should incremental demand or disruptions emerge.

Routing & Geopolitics – No significant routing shifts today. Across clean, crude, and LNG, tankers continue bypassing traditional chokepoints in favor of longer Cape routes. These extended voyages absorb tonnage, reduce effective supply, and sustain a structural floor under freight markets. Conditions remain balanced but fragile, leaving the market highly sensitive to external shocks.

Enjoyed this article?