Fuel and Freight Daily Update - 9/9/25

09/09/2025

All prices reflect end-of-day settlements from September 8th, 2025

Colonial Pipeline Differentials (USGC):

• ULSD 62g (C52): -6.00

• Jet Fuel 54g (C53): -21.25

Clean Tankers The U.S. Gulf continues to see heavy availability of clean product tankers, keeping pressure on owners. Flows into Latin America and the U.S. East Coast remain steady, preventing a sharper downturn, but the oversupply of tonnage remains the defining headwind. Risk premiums tied to delays and geopolitical uncertainty continue to provide some insulation, leaving the market soft but stable.

Crude Tankers VLCCs are still firmly committed to the Cape of Good Hope detour, bypassing both Hormuz and the Red Sea. This routing continues to lengthen voyages, absorb global capacity, and structurally support Middle East–Asia long-haul rates. The Cape has effectively become the “default” path, leaving crude freight structurally firm despite muted global demand signals.

LNG Shipping LNG freight markets remain tight. Demand in the Atlantic Basin is steady, but vessel availability remains thin. Seasonal weather risks and cautious routing are keeping voyage times extended. Spot rates are holding firm, with limited slack to absorb any sudden increase in demand.

Routing & Geopolitics Across all tanker classes, rerouting around high-risk chokepoints remains standard. These longer voyages continue to tie up tonnage and reduce effective supply, reinforcing a structural pricing floor. Market conditions remain balanced but vulnerable to sudden demand shifts or geopolitical shocks.

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