By Aurelion Research
Description: Small-Cap | Global Product Tanker Owner & Operator
We are adding the stock to the Aurelion Index.
If you have been following us for some time, you already know we are highly invested in shipping, and it is one of the sectors we follow the most closely.
In a tanker bull market, big gains can be made, but big losses can also happen, so timing is everything. Today we are looking at product tankers and sharing our highest conviction idea in the segment. We are adding it to the Aurelion Index today, and we are highly confident the setup can deliver strong returns over the coming months.
So why product tankers. We still like crude tankers, and our view on names like FRO and ECO has not changed. The difference is timing. We want to be early on what can drive the next strong run, and product tankers look well set up. If trade routes stay longer and voyage times remain elevated, we believe this segment can be one of the strongest performers in 2026.
To put the current setup in context, it helps to look at what drove the last few years. As the chart shows, product tanker earnings have eased from the 2022 peak, but they remain high versus most of the past cycle. Longer voyage times and ongoing disruption in trade flows mean each ship completes fewer voyages per year. We believe that keeps effective supply tighter than the headline fleet count suggests and supports a firmer rate backdrop than the market is pricing, which should keep earnings above mid cycle levels.
Product Tanker Earnings Remain at Historically High Levels
