Suezmax

Thanks, Craig.

First up, Dynacom Tankers Management has signed up for more new buildings, extending its lead as the owner of the world's largest tanker order book.

Market sources told Tradewinds that Dynacom principal George Procopiu booked six VRCCs and Suezmaxes at Hengley Heavy Industry earlier this month.

The deal lifts the Procopiu family's September new building haul to 10 vessels.

Next, the VRCC sale and purchase market ran hot for a second consecutive week, with brokers reporting a fresh round of deals at sharply rising prices delivering sellers huge profits.

If you want to play at scale in these markets, if you're Poland and you want to go get a Venezuelan oil concession, or if you're a Brazilian region that actually needs gasoline delivered into some port, Like the minimum ticket size is tens of millions usually, if not larger.

So like a cargo itself right now, like a Suez Max costs $100 million.

A ULCC, an ultra large crude carrier, like what's inside of it costs $200 million at these prices.

These are big bucks.

Right.

What we call a Suez Max tanker that was coming out of the port of Yanbu.

Yanbu is where Saudi Arabia's east west pipeline that is now bringing most of their oil out, about five to seven million barrels per day from the town of Abqaiq.

Right.

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physically, and ends up in the Yanbu Pipeline Terminus.

Now, all of this is integrated, so for those of you who are getting a little geographically confused, that Suez Max vessel was 64 nautical miles west of Yanbu.

And the Houthis destroyed it with a ballistic missile that flew 1,076 kilometers, about 750 miles.

You're also seeing some The saber-rattling of this new Middle East alliance, I'm forgetting the name of it, Pakistan, Saudi, and others that have signed on to linked to activities of the Houthis, and the Houthis are threatening the Bab al-Mandeb Strait, which is the outlet for seaborne cargoes that need to get out of the Red Sea.

Clearly, those Suez Max-type tankers don't have to go through there and could go up through the Suez Canal, but that's a limited number of tankers relative to the larger ones that are the big VLCCs or whatever they're called.

So we have this whole geopolitical situation, shortly put, causing ongoing consternation.

And where's the end of it? I don't know.

So all this is happening and we're making money hand over fist.

Everybody's lining up at the Gulf of America to load up their frigging Suez Max tankers and everything.

Oh, they're all their tankers and everything else.

We're exporting the crap out of oil.

I'm seeing published reports circulating as to the prospect of more American strikes on one or more oil tankers located near Karg Island in the Persian Gulf.

We, of course, saw those dramatic videos circulating on social media over the weekend of three tankers being struck, one VLCC, two Suez Max, including one tanker, which is said to have been destroyed and actually sunk in the Gulf of Oman.

Unclear at this point as to the scale of any additional strikes that may have been carried out by U.S. forces.

And yet it's entirely in keeping with something that we would expect to happen as multiple conflicts that the Americans are involved in, military, economic and otherwise, continue to escalate.

The blockade has been so powerful, so effective.

I was actually thinking about starting the show by saying this today because there's so many unprecedented historic events happening.

But over the weekend, with the sinking of a Suez Max class tanker in the Gulf of Oman, which was unladen, which means that it was not filled with oil.

And the video of it being struck by U.S. forces is just absolutely dramatic.

Bloomberg also reported that Iran plans to declare a new restricted zone outside the Strait of Hormuz, while U.S. Energy Secretary Chris Wright indicated that the American naval presence and blockade would continue until Iran changes its position.

U.S. Central Command said one Suezmax tanker had sunk following a strike, while two other tankers were disabled.

That wraps up today's overview.

Thank you for tuning in to the CM Navigator Agri-Commodity Report.

And by early October, the screen broadens further with West Coast India and even Singapore.

I mean, we are seeing cargo or opportunity open from Singapore on a Suez Max vessel through Suez Canal into into Europe.

This morning, I was also looking at one Korean cargo getting on a fixture for Europe.

So that's a very far or long transit vessel or diesel supply from Far East to Europe.