four wind lr2 tanker taurus

Sluggish Trade Weighs On Transatlantic Clean Tanker Rates

Reuters
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July 29, 2013

four wind lr2 tanker taurus
Four Wind, an LR2 Tanker image courtesy Taurus Tankers
reuters logoLONDON, July 29 (Reuters) – Transatlantic clean tanker rates were steady on Monday, although slower activity put the brakes on a recent rally.

Rates for medium-range tankers for 37,000-tonne cargoes on the TC2 route from Rotterdam to New York were at W138.96, or $12,436 a day when translated into average earnings,

That compared with W139.09 or $12,494 a day on Friday and W138.54 or $12,246 a day last Monday.

Earnings rose to their highest in nearly two months last week helped by a pick up in shipments to Latin America, partly to cover refinery outages.

“The scheduled arrival into the area of a number of ships discharging cargoes from the US Gulf should add to tonnage availability and could see rates fall more quickly,” broker SSY said.

In other markets, Long Range 1 tankers, carrying 55,000-tonne loads from the Middle East Gulf (MEG) to Japan, reached W78.46 or -$321 a day.

That compared with W78.27 or -$517 a day on Friday and W77.10 or -$1,159 a day last Monday.

Average earnings per day are calculated after a vessel covers its voyage costs such as bunker fuel and port fees.

Larger Long Range 2 or LR2, 75,000-tonne shipments on the Middle East Gulf to Japan route were at W69.91 or $2,550 a day. That compared with W70.00 or $2,460 a day on Friday and W70.55 or $2,492 a day last Monday.

“For LR2s in the MEG, charterers continue to apply pressure to rates as activity remains muted and amid good tonnage availability,” SSY said.

“So far, owners have prevented significant rate declines, but their resolve is being tested.”

Late last year the volume of LR1 fixtures jumped to their highest in years, helped by healthy naphtha and jet fuel bookings to Asia, sending earnings to their highest since early October 2009. (Reporting by Jonathan Saul; editing by James Jukwey)

(c) 2013 Thomson Reuters

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