Atlantic MR pressure shifts: Navigating the split in International Shipping News 04/06/2026 Global tanker markets faced widespread downward pressure in late May. VLCC, Suezmax, and Aframax freight rates across key routes declined due to structural oversupply and influxes of ballast vessels. While Cross-Med Aframaxes and MEG-Japan LR2s managed to trade flat or steady , MR product tankers diverged sharply. UKC-USAC rates weakened , whereas USG-UKC benchmarks surged on resilient transatlantic summer demand. VLCC MEG – China (TD3C) MEG to China VLCC rates continued descending in the last decade of the month, slipping by $0.31/bbl to $11.430/bbl. As May comes to a close, Kpler data suggest that just one VLCC, with no prior exposure to parallel trades, entered the MEG throughout the month, highlighting that liquidity on the route remains thin. A closer look suggests that the vessel in question followed the newly established Iranian route, centered on Larak Island. However, the past week saw OFAC sanction the Persian Gulf Strait Authority (PSGA), the Iranian body introduced to oversee transits through the Iranian corridor, curbing any optimism over an uptick in the ballaster traffic through the specific route. Absent progress in US-Iran talks, rates are expected to fall further over the forecast. Suezmax WAF – UKC (TD20) In line with our expectations, the final decade of May saw a sharp correction in WAF-to-UKC Suezmax rates, with assessments falling by $0.69/bbl w/w to $4.11/bbl. Back in mid-May, we highlighted that a significant wave of ballast vessels from the East would likely trigger a renewed correction in regional assessments. This has now materialised, with most of these vessels having crossed the COGH and moved toward West Africa, while a second, smaller wave of ballasters is currently transiting the western Indian Ocean, suggesting that vessel length will persist into mid-June. Aframax USG – UKC (TD25) The descent in USG-to-UKC Aframax rates also accelerated towa