Freight
Market Overview
Naturally freight rates have climbed in lockstep with geopolitical tensions over the course of July.
But on a WS basis rates are still at the lower end of the "normal" TD3C range of WS 350–400 seen since April.
If Houthi attacks transpire, or even if the threat of an attack prompts buyers to reroute at scale, it adds another massive inefficiency into the global freight market.
Be also mindful of the much longer ballast legs for Yanbu loads avoiding Bab el Mandeb
This would imply current TD3C rates are undervalued relative to expectations of higher tonne-miles for VLCCs heading to Asia (due to travel from the Red Sea around Cape).
