Transatlantic Clean Tanker Market Seen Supported For Now

four wind lr2 tanker taurus
Four Wind, an LR2 Tanker image courtesy Taurus Tankers

reuters logoLONDON, July 8 (Reuters) – Clean tanker rates for refined petroleum products on top export routes were mostly lower on Monday although the transatlantic market remained supported by U.S. bookings.

Rates for medium-range (MR) tankers for 37,000-tonne cargoes on the TC2 route from Rotterdam to New York were at W115.00, or $7,377 a day when translated into average earnings.

That compared with W109.38 or $6,152 a day on Friday and W111.04 or $6,867 a day last Monday.

Brokers said cargoes moving from the United States to Europe has helped support the overall transatlantic market.

“Rates have stabilised towards the end of (last) week,” broker SSY said.

Long Range 1 tankers, carrying 55,000-tonne loads from the Middle East Gulf (MEG) to Japan, were at W80.00 or $503 a day.

That compared with W81.71 or $1,068 a day on Friday and W86.96 or $3,102 a day last Monday.

Larger Long Range 2 or LR2, 75,000-tonne shipments on the Middle East Gulf to Japan route were at W70.73 or $3,218 a day. That compared with W70.68 or $3,137 a day on Friday and W72.82 or $4,280 a day last.

“Both LR1 and LR2 rates in the MEG have continued to decline,” SSY said. “A wealth of available tonnage is forcing owners to lower their expectations in order to secure a very limited number of fixtures.”

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.

“(LR) markets have seen rates paid now that are at lows not seen for many years,” broker E.A. Gibson said. (Reporting by Jonathan Saul; Editing by David Evans)

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