Why are chemical tanker spot rates still elevated despite a recent decline?

Chemical tanker spot rates remain elevated due to continued disruptions in the Middle East and other regions (including the Black Sea, Red Sea, eastern Mediterranean, and off Somalia), prolonged sailing distances caused by geopolitical inefficiencies, limited availability of swing vessels, and the Panama Canal’s upcoming transit restrictions due to El Niño-induced drought — all of which constrain supply and support freight rates even as demand faces headwinds from inventory uncertainties and rising interest rates.

What structural shift in cargo composition helped offset declining chemical volumes for Odfjell in Q2 2026?

The decline in commodity and specialty chemical volumes — driven by the loss of Persian Gulf shipments — was offset by strong growth in vegetable oils and biofuels, whose share of Odfjell’s total cargo rose from 12% at the start of Q2 to 19% by its end, up from an average of just 8% across 2025.

Chemical tanker rates down but still high on tight supply: Odfjell

Aug 24, 2026

Odfjell reports chemical tanker rates declined from early Q2 peaks but remain elevated due to Middle East disruptions and vessel shortages. Biofuel shares rose, and Panama Canal droughts are expected to support freight rates further despite flat volumes.

chemweek

Chemical tanker rates down but still high on tight supply: Odfjell

chemweek

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