BIMCO: Product Tankers Switch to Crude Amid Strait of Hormuz Disruptions
Refined product shipments on LR2 tankers dropped 28% year-on-year in the first nine months of 2026, while crude and heavy product shipments rose by 1.8 million barrels per day.
BIMCO stated that refined product shipments on LR2 tankers fell by 28% year-on-year during the first nine months of 2026, with these vessels loading an average of 2.1 million barrels per day (bpd), down 0.8 million bpd from the same period in 2025.
Shipments from the Gulf dropped from 1.2 million bpd in 2025, which represented more than 40% of total refined products transported on these tankers, to 0.4 million bpd in 2026, accounting for just 18% of the total.
In contrast, average crude and heavy product shipments rose by 1.8 million bpd to 5.1 million bpd, with total volumes increasing by 15%. Niels Rasmussen, Chief Shipping Analyst at BIMCO, noted that part of this shift was due to an 18% expansion in LR2 fleet capacity since Q2 2025.
80% of the increase in crude and heavy product shipments was spread across the Mediterranean and the Americas, with LR2 tankers capturing about 30% of the increase in Venezuela's exports. Sailing distance was shortened by 33% compared to refined products, explaining why ton-mile demand grew by only 2% despite volume growth.
What do these terms mean?
LR2 Tankers: A class of petroleum product tankers, abbreviated as LR2, typically used to transport fuels such as diesel and gasoline over long distances.
Refined Products: Oil derivatives after processing in refineries, such as gasoline, diesel, and jet fuel, differing from crude oil which is transported as is.
Ton-mile Demand: A metric combining cargo volume with sailing distance, used to measure the true demand for ships because a longer voyage consumes more time and capacity.
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