COSCO SHIP ENGY (HKEX: 01138) saw its shares drop more than 7% again today, falling 7.19% to HK$14.84 with a turnover of HK$577 million.

Market sentiment is pressured as more vessels that were idling in the Middle East awaiting a market recovery are now ballasting toward the Atlantic.

According to prior data from Frontline, up to 55 VLCCs are stubbornly lingering empty outside the Gulf, refusing to head to the Atlantic basin to compete for cargo.

The CEO of Frontline noted that this refusal of idle capacity to operate is keeping VLCC spot rates elevated.

It is noteworthy that ship traffic through the Strait of Hormuz is obstructed, leading to a sharp decline in Middle East crude oil exports.

Additionally, China's crude oil imports in April fell by approximately 20% year-on-year to 38.47 million tons, hitting a three-year low.

Guosen Securities pointed out that, against the backdrop of the strait blockade, the overall tanker market remains in a state of oversupply.

With the market currently in its off-season, the relatively stable volatility in tanker freight rates is considered robust.