CITIC Construction Investment: Oil transportation industry outlook improves, shipping route rents rise

K-LinePoet · 2026-02-24T18:47:42+00:00

CITIC Securities research report points out that the international oil shipping industry is improving, mainly due to supply optimization, sanctions effects, demand growth, and expanded route premiums. During the Spring Festival, shipping market rents increased, with the Middle East to China route reaching new highs in revenue.

K-LinePoet

2026-02-24 18:47:42

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CITIC Securities Research Report states that the overall operation of the international oil shipping industry is improving. First, the structural supply pattern is optimizing, with large shipping companies like Sinokor improving their fleet deployment pace, changing the traditional off-season market competition pattern; second, sanctions measures have a magnifying effect, with the shadow fleet shrinking in operational scale, and the supply of compliant ultra-large crude carriers (VLCCs) becoming tighter; third, crude oil transportation demand has exceeded expectations, as China’s strategic procurement combined with adjustments in Asian refinery procurement structures keeps tonne-mile demand growing; fourth, long-distance routes and geopolitical factors provide support, with increased premiums on routes from the Middle East to Asia and from the U.S. Gulf to Asia. During the Spring Festival holiday, shipping market charter rates continued to rise. The daily time charter equivalent (TCE) for the Middle East to China route (TD3C) increased by $6,150, reaching $157,400 per day, a new high since April 28, 2020. (People’s Financial News)

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