VLCC earnings on the Middle East Gulf-to-China run touched $1.2 million per day this week, the highest print of a record run, as the Baltic Exchange assessment put average VLCC earnings above $700,000 p/d.

At least five tankers were struck in the Strait of Hormuz during the period, President Trump has rejected Iran's proposal to reopen the waterway, and the United States is reported to be sending a third aircraft carrier to the region. Clarksons Hellas's latest SnP Weekly frames those moves as the immediate catalysts.

What happens to charterers who tried to step down a size?

Suezmax average earnings jumped by nearly $130,000 on Thursday alone, settling near $448,000 p/d, the report said. Charterers downsizing from VLCCs to cut freight costs have run into limited supply.

Clean product tankers extended their climb alongside crude carriers, with average earnings estimated near $140,000 p/d. Long-range (LR) segments led the move.

Two risks overhang product carriers: a possible US diesel export ban and China's reported suspension of October product exports, both flagged by Clarksons Hellas.

Why are secondhand VLCCs priced above newbuildings?

S&P activity on crude carriers stayed firm. "Sellers' strong price ideas are being met by willing buyers, keeping modern secondhand VLCCs and Suezmaxes priced well above Newbuildings, a record premium in the case of VLCCs," Clarksons Hellas wrote.

Several buyers chased prompt-delivery tonnage, particularly units positioned close to the Middle East Gulf.

The marquee deal of the week: the VLCC SEAKING (about 317,000 dwt, built 2013 at HD Hyundai / HHI) sold to clients of ADNOC for $175 million.

Dry bulk pauses for Golden Week

The dry bulk period market has settled into "a healthy standstill," with fixtures continuing at like last-done levels. Spot earnings took "a bit of a breather," the report added.

The Baltic Dry Index closed at 3,148 points, down from the 3,400-3,500 area the prior week. Clarksons Hellas expects a "logical pickup" once traders return from China's Golden Week holiday.

Enquiry volume held up across the size spectrum, with a slight spike for modern eco Ultramaxes and Kamsarmaxes on the gearless side.

Weekly S&P print

• Capesize BULK JOYANCE — 175,636 dwt, 2012, Jinhai Heavy Ind. — $31.1m
• Post-Panamax LC MILADY — 93,758 dwt, 2011, Shanhaiguan SB — high $14m
• Eco Kamsarmax GCL HAZIRA — 81,986 dwt, 2021, Nantong COSCO KHI — $38.8m, sold to German interests, delivery October/November 2026
• BABITONGA — 81,600 dwt, 2019, Tsuneishi Zosen — $38.5m, sold to C/O Sincere Navigation
• Supramax YC AEQUOR — 56,785 dwt, 2012, Ningbo Lantian SB, 4×30T cranes — high $13m
• MR2 ATLANTIC CROWN — 47,128 dwt, 2007, HD Hyundai Mipo — $19.2m

What to watch next

The coming trading sessions will determine whether the Hormuz premium persists or unwinds. Any sustained reopening compresses the MEG-China $1.2 million rate, while further strikes or escalation push it higher and keep secondhand VLCCs above newbuild prices. On dry, the post-Golden Week bounce will test whether BDI 3,400-3,500 was a floor or a peak.