Changes in MR (Medium Range) demand in the maritime transport market indicate a return to regional trade in the Pacific. MR revenues from the Pacific in 2026 have been significantly higher than those from Atlantic routes, and trading patterns have changed dramatically since April.
Changes in Trading Patterns
After disruptions in the Gulf, MR vessels moved from the Pacific to the Atlantic in search of alternative jobs. This led to a temporary spike in Atlantic demand peaking in April, while Pacific demand sharply declined. Over time, these exceptional voyages gradually decreased, and MR employment shifted towards more local areas.
Improvement in Pacific Demand
The improvement in MR demand in the Pacific has been due to strong exports from the western coasts of India and East Asia, which have well compensated for the reduction in Gulf loadings. Long-term exports towards the western coasts of South America and South and East Africa have also contributed to vessel employment, with demand for ton-miles exceeding the growth in cargo volume.
Indian producers have maintained product exports by diversifying crude oil sources and utilizing inventories. Additionally, Chinese producers have responded to raw material shortages by using crude oil inventories. China's diesel exports in September reached a four-year high, with 29 MR voyages primarily directed towards Southeast Asia and the Pacific.
Demand and Supply Outlook
While ton-mile demand from the Atlantic has weakened due to reduced Baltic exports, strong CPP (refined products) activity in the Mediterranean continues to support part of the employments. However, the short distances of the voyages have limited its impact. Currently, it seems that MR supply in the Pacific is moving towards stability due to increased export demand from India and East Asia, as well as steady imports from the Pacific.
As a result, considering the reduced supply of vessels in the Atlantic, these changes could help improve revenues and ultimately impact market balance.
