A record high number of LR2s are now trading in the dirty market. While this shift first began to emerge in October 2025, the recent conflict has clearly accelerated the trend, with LR2 increasingly deployed into dirty trades as the market shows better economics.

The continued closure of the Strait of Hormuz has undoubtedly disrupted flows out of West of Hormuz, making it more difficult for crude and product cargoes to reach end buyers. Refiners that had relied on Middle East Gulf liftings are beginning to face crude supply shortfalls, with some run cuts now emerging, and several Asian countries are also starting to curb product exports. For LR2s, this has weakened core clean tonne-mile demand and reduced forward cargo visibility in the Pacific.

Against this softer clean backdrop, the silver lining is the speed at which the market is adapting. Part of the clean fleet is already repositioning away from the Pacific towards the Atlantic, where refinery runs remain healthy and product demand is proving more resilient. At the same time, strength in the dirty market, particularly in the Aframax segment, is creating an increasingly attractive alternative for LR2 owners. Our Anywhere Freight Pricing global basket index shows that Aframax earnings have outperformed clean LR2 returns, encouraging more owners to dirty up coated tonnage. This is an important support mechanism: while it does…