The insertion of the Cape of Good Hope option for Persian Gulf-Europe routes, driven by deep security concerns and a tight supply of tankers, has led to a rapid surge in clean tanker freight premiums. Despite limited exercise of this option, the mere inclusion has propelled freight rates to some of the highest levels this year. Longer voyages via the Cape are now commanding significant premiums, with LR2 tankers witnessing a remarkable increase from $400,000 to $950,000 in just a few days. The escalating attacks in the Gulf of Aden have prompted ship owners to consider the Cape route as a more secure alternative, driving up transportation costs even before its actual implementation. The rising freight costs are impacting westbound voyages and supporting rates for moving naphtha from the Persian Gulf to East Asia. To counter the upward trend, charterers are engaging in relet deals among themselves, fearing that longer and costlier voyages may become the norm if security risks persist. A US-led naval task force is set to deploy around the Red Sea to deter further maritime attacks, signaling heightened concerns among energy traders and major oil and shipping firms.

SOURCE:GOOGLE