Fuel and Freight Daily Update - 9/3/25

09/04/2025

All prices reflect end-of-day settlements from September 2nd, 2025

Colonial Pipeline Differentials (USGC):

• ULSD 62g (C51): -7.30

• Jet Fuel 54g (C52): -23.50

Clean Tankers
The U.S. Gulf remains oversupplied with clean product tankers, keeping the market under pressure. Though exports to Latin America and the East Coast continue to offer some relief, the heavy vessel list still weighs on sentiment. Risk premiums for geopolitical uncertainty and delay are consistently embedded, shielding rates from a sharper decline—but the market remains precariously balanced.

Crude Tankers
VLCCs continue rerouting around the Cape of Good Hope, avoiding Hormuz and the Red Sea. These extended journeys keep tonnage tied up and maintain support for long-haul Middle East–Asia rates. The Cape route is now considered the “default,” contributing to structural support for crude freight despite subdued demand.

LNG Shipping
Freight remains tight in the Atlantic Basin. Limited vessel availability—due to longer routes and ongoing weather factors—continues to underpin rate strength. Any incremental uptick in demand could quickly tighten this already fragile balance.

Routing & Geopolitics
Tankers across clean, crude, and LNG segments are still deviating around high-risk chokepoints. These detours prolong voyages and absorb available tonnage, reinforcing a structural pricing floor. With capacity stretched to its limits, market stability hinges on demand holding firm in the near term.

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