Market & routes
Tonne-miles
Meaning
Tonne-miles measure tanker demand as cargo volume multiplied by distance carried, so longer voyages absorb more ships even if volumes don't change.
Also written as Tonne-mile demand, Ton-miles
Tonne-miles explained
When trade routes lengthen, as when ships divert from the Red Sea around the Cape or when Russian crude moves to India instead of Europe, tonne-mile demand rises and freight rates tend to strengthen.
Related terms
Cape of Good Hope
The Cape of Good Hope route takes ships around southern Africa instead of through Suez, the standard path for laden VLCCs between Asia and the West.
Bab-el-Mandeb
Bab-el-Mandeb is the strait between Yemen and the Horn of Africa connecting the Red Sea to the Gulf of Aden, on the route to and from the Suez Canal.