A Brief Comment Regarding Shipping Markets and Red Sea Disruptions

Hostilities in the Middle East are likely to lead to even greater disruption of traffic on the Suez Canal and likely in the Gulf of Hormuz.

Expect to see more VLCCs taken in on floating storage to move crude out of the Gulf of Hormuz and away from hostilities while the risk is lower.  Spot rates likely to increase significantly even in the face of apparent demand weakness.

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