Shipping Markets Reach New Highs Amid Boom Fueled by Middle East Disruption

Shipping markets have reached new highs across multiple sectors, with Clarksons Research's cross-sector ClarkSea Index jumping another 14% to $75,658 a day, its fourth consecutive all-time high. The index has now surged 73% in a month and is up 66% year on year.

Tankers remain the principal engine driving this boom, but other sectors are also running at historically exceptional levels. Average VLCC earnings climbed another 10% to around $660,000 a day, while suezmax earnings surged 72% to a record $630,000.

The latest surge caps a record quarter for shipping, with the ClarkSea Index averaging $46,384 a day during Q3, beating the previous quarterly record of $44,222 set in 2008. However, experts warn that this boom may be triggered by an enormous supply response as charterers begin to cut back due to high freight costs.

Clarksons calculates that ship-to-ship operations, Suez diversions, and longer Atlantic voyages are tying up tanker capacity faster than the loss of Middle Eastern barrels is reducing cargo demand. Veson Nautical predicts that full restoration of Middle East oil flows won't occur before at least mid-2027.