Seasonality and Very Large Crude Carriers (Q2 2024)

While AI dominates many companies’ earnings report discussions, seasonality is the leading profit-driving topic for publicly listed VLCC players.

Historically, large crude tankers’ rates bottom out at the end of the summer and then double going into the high-demand winter season. Q2 earnings presentations of Hunter Group ASA, Okeanis Eco Tankers Corp., Frontline Management AS and DHT Holdings, Inc. each had an entire slide dedicated to highlighting this trend to their stakeholders.

The shipping market’s cyclical nature underscores the importance of timing and strategic positioning for VLCC companies and their investors to capitalize on peak profitability periods.