European seaborne imports of diesel and gasoil have shown a notable recovery in May, following a period of low volumes in April. Data from the first 18 days of May indicates that imports reached 1.5 million barrels per day (mbd), marking a 16% increase compared to the same period last year.
This resurgence in supply is primarily driven by increased exports from the United States. Traditionally, Europe sourced a significant portion of its diesel from East of Suez markets, including the Middle East Gulf and the West Coast of India. However, supplies from these regions have decreased to near zero, necessitating a shift in procurement strategies.
For freight forwarders and operations managers, this trend suggests a potential shift in tanker routing and demand for specific trade lanes. The increased reliance on US refining capacity for European diesel imports will likely boost transatlantic shipping volumes for refined petroleum products. This could influence vessel availability and freight rates on the trade-lane-transatlantic, while potentially reducing demand on routes from the Middle East and India to Europe.
