Four Wind, an LR2 tanker, image courtesy Taurus Tankers
LONDON, Sept 29 (Reuters) – Rates in the long-range tanker market for transporting oil products softened on Monday as lighter bookings took a toll on sentiment.
Long-Range 1 tankers, carrying 55,000 tonne loads from the Middle East Gulf to Japan, reached W116.30 in the Worldscale measure, or $12,295 a day when translated into average earnings
That compared with W117.70 or $12,748 a day on Friday and W125.93 or $15,338 a day last Monday.
“For LR1s, rates have eased going East and West, with the soft sentiment expected to continue,” broker SSY said. “Fresh long-haul cargoes have been limited, with current activity levels insufficient to clear out a glut of tonnage.”
In contrast, larger Long-Range 2 or LR2, 75,000 tonne shipments on the Middle East Gulf to Japan route were at W105.00 or $17,672 a day on Monday.
That compared with W105.39 or $17,820 a day on Friday and W106.94 or $18,286 a day last Monday.
“Downward pressure on LR2 rates has begun to mount, with fresh enquiry going forward slowing significantly,” SSY said. “A significant – and now unlikely – increase in long-haul enquiry from the MEG and WC (West Coast) India will be needed to change momentum.”
Rates for medium-range tankers for 37,000 tonne cargoes on the TC2 route from Rotterdam to New York were W120.00, or $8,699 a day.
That compared with W111.36 or $6,850 a day on Friday and W101.14 or $4,556 a day last Monday.
“The Atlantic MR market picked up as a result of strengthening rates on the UKC-USAC (UK-Continent to Atlantic) route,” Natasha Boyden of MLV & Co said.
In January, earnings reached their highest level since early August last year.
Rates for MR tankers on the U.S. Gulf (USG) to Europe route were at W70.36, or negative at -$1,909 a day. That compared with W71.43 or -$1,612 a day on Friday and W75.00 or -$825 a day last Monday.
“With the majority of current (USG) fixtures done for short-haul voyages, the position list is refilling quickly and activity levels have not been enough to lift rates, despite continued demand for voyages to Mexico,” SSY said.
Average earnings per day are calculated after a vessel covers its voyage costs such as bunker fuel and port fees. (Reporting by Jonathan Saul; editing by Jane Baird)
(c) 2014 Thomson Reuters, All Rights Reserved
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 110,142 members that receive our newsletter.
Have a news tip? Let us know.
A Russian Navy frigate equipped with new generation hypersonic cruise missiles has conducted drills in the English Channel and is carrying out tasks in the Atlantic Ocean, Russian news agencies reported on Tuesday.
(Bloomberg) — Chinese lawmakers got a head start on the US election this week as they gathered to vote on the largest fiscal package since the pandemic. But now that...
by Ossian Shine, (Reuters) – Germany’s Red Bandit, skippered by Carl-Peter Forster, was crowned winner of the 45th Rolex Middle Sea Race, becoming the third German yacht to win the prestigious offshore challenge. Following...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 110,142 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
