Port Fee Saga

It is likely that many people in the shipping industry were hoping we had seen the last of additional port tariffs in October, after the US Trade Representative’s (USTR) Section 301 tariffs targeting Chinese owned, operated or built ships were put on hold for a year, with China also lifting its own retaliatory measures. However, after causing havoc in 2025, the port fee saga has its latest instalment. On Friday the 13th of February, the Trump administration published their most recent plan to restore America’s maritime dominance.

The plan contains incentives for fleet expansion of US built, US flagged vessels, by subsidising the modernisation of shipyards, including new drydocks, aimed at increasing throughput and decreasing construction timelines. Further, whilst these measures are carried out, the proposal contains a provision to bring foreign-built vessels under the US flag to carry international trade in the interim. The funding required is intended to come from the Maritime Security Trust Fund, which in-turn will derive its income from the latest plan for US port fees. Details remain thin, but the plan proposes a fee on all foreign-built commercial vessels entering U.S. ports, with costs based on the weight of imported cargoes, set at between $0.01-$0.25 per kg.

Only about 1% of tankers above 25,000 DWT are US built, which means this plan would cover virtually all tankers. At the lower end of the range, at $0.01 per kg, the fees would imply a cost of around $2.7m per voyage for a fully laden VLCC discharging into the US, or around $450,000 on a fully laden MR. At the upper end of the range, at $0.25 per kg, the fees would reach a cost of around $68m per voyage for a fully laden VLCC discharging into the US, or around $11m on a fully laden MR. These costs are even steeper than those in the previous plan, and even at the lower end of the range would be prohibitively expensive.

Vessels arriving in ballast would be exempt, yet contrary to previous iterations of US port fees, no details for any further exemptions are currently included in the plans. Notably, the latest proposal applies to all foreign-built vessels and is not China focused, levelling the playing field. Considering the US Trade Representative’s (USTR) Section 301 tariffs were postponed shortly after being implemented, when China rapidly implemented significant retaliatory fees, these latest port fees seem unlikely to be enacted in their current version. It is also unclear whether the latest plans will replace the earlier regime. The proposal appears to be in its infancy, with few details and no implementation framework in place. Further, congressional approval is likely required for this plan to be enacted, which presents a considerable hurdle.

One thing is clear, the latest details of Trump’s Maritime Action Plan signal continued intent from the Trump administration to revive the American shipping industry. Whether the plans improve the competitiveness of US shipyards remain to be seen. Currently, the costs of constructing virtually any type of commercial vessel remain significantly higher than at competing Korean, Japanese, or Chinese shipyards, and capacity significantly lower.

US Port Fees for foreign-built ships ($m)

Crude Oil

East

The AG VLCC market opened the week on a quieter note, with limited fresh activity visible on the surface. Holidays in the East contributed to a slower pace, though overall sentiment remained firm across the region. As the week progressed, a modest flow of activity emerged. Tonnage was gradually and quietly picked off the list, helping sustain owners’ firm sentiment. While enquiries remained relatively measured, underlying demand provided sufficient support to prevent any softening in freight levels. Midweek, the release of Saudi stems injected hope into the market, with expectations of increased enquiry. Despite this, visible fixtures remained limited as most of the activity taking place under the radar. Toward the end of the week, owners’ sentiment strengthened further. The list continues to tighten, combined with persistent market rumours of high prices being done, helped push freight levels higher, leaving the market on a firmer footing heading into next week.

On Suezmaxes, a consistent flow of both short-haul and long-haul cargoes ensured the position list remained active, allowing rates to gradually build momentum over the course of the week. While a handful of fixture failings caused brief pauses in proceedings, the broader market tone remained constructive, supported by firmer sentiment in the VLCC segment.

Despite a shortened trading week, Aframax activity levels in Asia remained steady, supported by fresh requirements for second-decade March loadings. Indices moved higher in line with improving sentiment, and owners are expected to test firmer levels in the coming week as larger tanker segments continue to firm. Tonnage availability remains notably light through the first half of March, providing underlying support to rates. Loadings ex-Oz are likely to follow a similar trajectory, with recent export flows out of Argentina drawing vessels away from the region and tightening local supply. We close the week assessing the market steady, with Indo/Oz at 80kt × WS187.5.

West Africa

The WAF VLCC market also began the week on a quiet note. Despite the subdued enquiry flow, freight rates remained broadly steady, supported by firmer conditions in surrounding regions. Midweek, an IOC quote provided the first visible sign of activity after several quiet days. This was followed by a modest improvement in enquiry, with charterers seeking coverage for second-decade March dates. Freight levels continued to firm in line with the broader market, although charterers showed some caution as momentum began to build. Toward the end of the week, fresh activity again slowed. Nevertheless, freight sentiment remained firm, underpinned by the region’s upward trend. With rates holding, the WAF market continued to rely on attracting natural ballasters from the East to maintain balance.

On Suezmaxes the week commenced with a healthy level of enquiry, which successfully absorbed the majority of prompt local tonnage. As the week progressed, activity remained steady, with expectations building that rates could see incremental gains. Support from the US Gulf market provided a stable underpinning, enabling owners to hold firm on pricing while WAF enquiry continued at a consistent pace. Availability for eastbound voyages remained limited, with only a handful of owners willing to commit. TD20 levels strengthened, trading in the mid to high WS160s. We close the week with positions tightening and a number of outstanding cargoes yet to be covered. Overall, the fundamentals suggest owners are likely to adopt a bullish stance heading into next week.

Mediterranean

On Suezmaxes, the first decade programme was active this week, with a healthy volume of early tonnage successfully securing employment. Despite market expectations that rates could be tested higher, WS200 was largely repeated throughout the week, indicating a degree of resistance at elevated levels. Improved weather conditions allowed operations to normalise, keeping the tonnage list broadly balanced and preventing any significant squeeze on supply. Given the current equilibrium between enquiry and availability, the prevailing sideways trend appears set to continue into next week unless fresh demand shifts sentiment.

The conclusion of another week for Med Afras boasts another strong performance where sentiment slants again in owners’ favour, with persistent drivers continuing to define where current trading ranges are set.  Weather delays, exceptional support from sentiment across larger asset classes, surrounding trade zones being firm, all denote a few of the influences which combine to prop up confidence – Even when at times, supply fundamentals may not totally equal the sum of their parts. The benchmark Ceyhan route is closing the week in the ws260s,  slightly off of its mid-week peak, and owners remain on a front foot, intending not to give much away in the early stages of trading come next week.   

US Gulf/Latin America

The States VLCC market opened the week with tonnage reappearing following last week’s surge of subject failures. Sentiment stabilised around prevailing levels, although activity remained subdued due to the US President’s Day holiday. As the week progressed, enquiry remained limited, with freight sentiment broadly steady. Strong earnings in the East helped support the market by reducing the flow of natural ballasters into the region. Midweek, a modest pickup in activity was observed. Freight rates followed the firmer trend seen in surrounding regions, underpinned by the limited availability of prompt ballasters. A fixture reported during the period confirmed firm levels, while an early Petrobras quote briefly stirred market attention. Toward the end of the week, visible activity slowed once again. The tonnage list appeared balanced overall, with sentiment remaining firm as participants looked for clearer direction.

North Sea

A bit of toing and froing this week for Aframax in the UKC. A tough cargo gave levels a bit of a test and those looking to have ice cover have been in a tight spot. The list still sits relatively balanced with levels holding at ws195 level. We continue to see the standard players eyeing up the States ballast with their returns clocking in at a higher rate vs the local market. For now, things seem pretty settled where they are.

Crude Tanker Spot Rates (WS)

Clean Products

East

LR2s trading at 150 EAFR (pointing towards 160 TC1) and$ 4m ag/ukc via cape although it must be said that volume fell short in the first half of the month. Slow week given Chinese New Year, half term, and Ramadan fell together in the calendar. Those worried about Trump/the US invading Iran took a quieter week to sit back and take stock. LR1s are quiet and missing Saudi volume which keeps tonnage moving short haul. TC5 bouncing around ws185 and west tested last at $3m levels. As we all watch Trump over the weekend – projecting assessments into the new week seems a wasted task.

A firm start to the week on MRs followed last Friday’s clearance of prompt tonnage, allowing TC17 to stabilise around 35 x ws195. However, activity remained quiet, largely due to Chinese New Year, and sufficient vessel availability ensured charterers maintained the upper hand. Despite some fresh enquiry entering the market, rates held around 35 x ws190-195 as owners struggled to generate upward momentum. By mid-week, the market entered a period of stalemate, with owners resisting lower levels but continued ballaster arrivals capping any recovery. Momentum shifted towards the end of the week as increased fixing activity reduced prompt tonnage. This allowed rates to move up to 35 x ws205, before firming further to 35 x ws215 by Friday. With the ballaster list tightening to around 10 vessels into early March and prompt tonnage reduced, owners are likely to approach next week with greater confidence. Ongoing geopolitical tensions in the region may also add uncertainty and provide further support to freight levels.

UK Continent

 A bit of a topsy turvy week ends here for the MRs in the UKC. We saw vessels opening up as weather subsided and a lack of longhaul enquiry keeping tonnage local. This has shown on the few long stems that have covered with TA slipping to 37 x ws125 come midweek. The real change though has been in the USG where rates have rocketed once again, and the desire to get this side of the Atlantic is now very apparent. A glut of XUKC stems have been slow in covering, with some taking smaller tonnage to clear, and when we did see a straight TA, this was taken out at 37 x ws117.5 (ws112.5 LC UCO). With a few vessels already ballasting to the USG, we can expect a few more over the weekend to set sail and await to see how much faith the remaining owners have in this sector. WAF and XUKC rates are in need of a test and expect owners to tap away at their TCE calculators and come up with some inflated ideas. 

There has been limited depth available on the Handysizes and majority of the cargoes for XUKC & UKC/MED have been upsized to 37kt clips as MRs have been the cheaper alternative, due to minimal fixing opportunities have been there for TA/WAF. There has been a resistance from Handy owners to compete against pro-rated MR levels with XUKC closing the week at 30 x ws250. 

Med 

Little to report on for MRs in the Med this week with rates holding steady at the 37 x ws150 mark for Med-TA. With turnaround season in full swing, eyes are on fresh stems which are needed to lift this market out of its sluggish nature. With the USG rates bouncing this could impact owners’ willingness to go TA. In general there is a hum of competitiveness on the owners side given there are some inbound laden units with list starting to look a little more stable. Med-WAF remains owner dependent with minimal volume traded here.

In all it has been a softer week for Handies in the Med compared to the last few weeks with rates correcting down to 30 x ws195 levels. We have seen a ws190 paid on vessels LC palms and ws200 on grade sensitive stems, but the bulk of business has traded sideways at the ws195 mark. Regular enquiry and a steady flow of tonnage have contributed to this calmness, with both parties accepting current fixing levels. Eyes on how the list restocks come Monday and how charterers respond but given we have not seen a wealth of end month enquiry, this market could be poised from the new ws195 floor.

Clean Tanker Spot Rates (WS)

Dirty Products

Handy

It’s been a slow week up in the North with little to activity to report. This can mainly be attributed to the overall lack of tonnage available and what little tonnage there is to work is mainly made up of relets keeping external cargo out of the market. However, when enquiry has surfaced rates for the most part have been tested upward with the equivalent of 30 x WS303.5 covered marking just over a 5-point rise from last done. With the tonnage list expected to remain tight early into next week we expect when owners are called upon, they will test rates upward toward WS305-310.

In the Med we have seen a different story this week as tonnage has been picked off quickly from the off with levels soon firming from WS305 and going through the gears up to WS315 on Friday which at the time of writing has been repeated a couple of times. Looking ahead to next week, bad weather looks to be clearing up which should allow for back logs to worked through at most Mediterranean ports and begin to ease up the squeeze of tonnage we have seen over the past month or so. Owners will look to hold their hard-fought ground, but it feels we are near the top of this market.

MR

Like their Handy cousins, MRs in the North have seen little enquiry to go round basis full stem as supply has remained tight across the board. The market awaits a fresh test here, but we expect owners to push toward the 45 x WS245 mark sooner rather than later. The Med has seen another active week for MRs with tonnage being clipped from the list. Some of these units have been clipped away for Premium Black Sea Med runs keeping supply for vanilla XMED moves tight. WS240 was tested this week before failing subs, marking a nice rise in rates as far as owners are concerned. It remains to be seen if these levels are to be repeated as we look ahead to next week, but owners will be keen to do so.

Panamax

Panamax activity has been fairly musted this week following the shorter working week out in the states. TD21 has seen levels come off to around 50 x WS350 at the time of writing following a slowdown in enquiry. However, the market remains tight and under-the-radar fixing continues. We expect rates to hover around these levels for now. UKC-TA has remained quiet despite on the surface enquiry for these runs. However, available and workable tonnage has remained scarce keeping this market in need of a fresh test with levels we feel around the WS160-170 mark into the USG.

Dirty Product Tanker Spot Rates (WS)

Rates & Bunkers

Clean and Dirty Tanker Spot Market Developments – Spot WS and $/day TCE (a)

wk on wk changeFeb 19thFeb 12thLast Month*FFA Q1
TD3C VLCC AG-China WS31163133127140
TD3C VLCC AG-China TCE $/day33,750158,750125,000118,500126,000
TD20 Suezmax WAF-UKC WS6164158150163
TD20 Suezmax WAF-UKC TCE $/day3,00079,25076,25071,00073,250
TD25 Aframax USG-UKC WS-13285298281272
TD25 Aframax USG-UKC TCE $/day-5,75082,75088,50081,75073,250
TC1 LR2 AG-Japan WS-3166168203 
TC1 LR2 AG-Japan TCE $/day-2,00038,25040,25052,000
TC18 MR USG-Brazil WS21291270188233
TC18 MR USG-Brazil TCE $/day3,25040,00036,75022,00027,500
TC5 LR1 AG-Japan WS4183180212207
TC5 LR1 AG-Japan TCE $/day030,25030,25038,50034,000
TC7 MR Singapore-EC Aus WS-1218220253226
TC7 MR Singapore-EC Aus TCE $/day-1,00024,00025,00031,00024,250

(a) based on round voyage economics at ‘market’ speed, eco, non-scrubber basis

Bunker Prices ($/tonne)

wk on wk changeFeb 19thFeb 12thLast Month*
Rotterdam VLSFO  +35481447425
Fujairah VLSFO  +26504478444
Singapore VLSFO  +39513474456
Rotterdam LSMGO  +58720662666

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