“The market is a bit upside down,” said Carlos Balestra di Mottola, told TradeWinds. “What was the front-haul became the back-haul, and what was the back-haul became the front-haul.”

"The market is a bit upside down. What used to be the main transport (front haul) has become the return transport (back haul), and vice versa. Trade flows have reversed. We used to transport products from east of Suez to west of Suez, but now we're doing the opposite."

In an interview with Tradewinds about the effects of the Iranian crisis, Carlos Balestra di Mottola, CEO of d'Amico Shipping International, said: “The Atlantic market is very strong, and there is demand for transporting naphtha and other refined products to Asia due to the tight supply in that region. As a result, the number of ton-miles transported has increased, and the market is strengthened by very high refining margins and strong arbitrage opportunities," di Mottola added.

Freight rates for refined petroleum products

Some routes have seen freight rates for refined petroleum products reach record levels. "However, we recognize that these rates likely won't last long," di Mottola commented. "There are strong incentives to end this war quickly, given that it could cause significant economic damage. I believe a solution will have to be found, and then we can potentially return to the robust markets we had before the war began."

The market began to weaken

Carlos Balestra di Mottola, added that sanctions on ships, the lifting of restrictions on Venezuelan oil exports, and increased oil production are providing additional support to the market. His company does not have any ships in the Persian Gulf or waiting outside of it. Rates outside the region are more than offsetting the weakening observed east of Suez. He explained, "There was an immediate spike, but then cargoes obviously ran out. The market then began to weaken."

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A prolonged closure of Hormuz

According to the DIS head a prolonged closure of Hormuz would divert approximately 4 million barrels per day via pipelines to other destinations. However, there would still be a net loss of 15 million barrels per day in terms of flows. A release of strategic reserves could reduce this figure to 13 million barrels per day. However, Di Mottola doesn't believe this will be enough to offset the long-term supply shortage. Of course, some ships are also stuck in the Gulf: about 8% of the VLCC fleet. In any case, the overall long-term net effect is very difficult to assess."

Increased its long-term charter coverage 

However, the company has increased its long-term charter coverage since the beginning of the year. D'Amico I.S.'s CEO stated that he is satisfied thus far. "We are doing very well on the spot market, so the averages have risen to levels we have never seen before, not even in the first half of 2024. We are quite happy to keep our current vessels on the spot market and benefit from these high rates," he added.

Very good freight rates

"We had very good freight rates in the first quarter, before the war began. These rates were consistent with those of the final months of the previous year. I think we can be optimistic that once the war is over, we will return to a normal but strong market."

The fleet of d'Amico International Shipping

Notably, the company controls a fleet of 29 product tankers, primarily MR2s, with exposure to the LR1 and Handysize segments. Of these vessels, 27 are owned and have an average age of 9.6 years. Balestra di Mottola stated that the ratio of the net financial position to the market value of the fleet at the end of September 2025 was around 7%. The company reported net profits of $63 million for the first nine months of 2025. Average daily spot earnings increased from $21,150 in the first quarter to $25,500 in the third

About : d'Amico International Shipping S.A

d'Amico International Shipping S.A. (DIS) is a leading, Milan-listed international marine transportation company specializing in the product tanker sector, transporting refined petroleum products, chemicals, and vegetable oils. Part of the d’Amico Group, DIS operates a modern, eco-design fleet, with offices in key maritime hubs including Dublin, London, Singapore, and the USA. 

Source :  Shipping Italy 

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