Long-range Clean Tanker Markets Rally on Higher Bookings

Posted by Eric Haun
Wednesday, May 14, 2014
Cape Endurance (Courtesy Taurus Tankers)

Long-range clean tanker rates rallied on Wednesday as buoyant demand for cargoes reduced vessel availability with expectations of further gains.

Long Range 1 tankers, carrying 55,000 tonne loads from the Middle East Gulf (MEG) to Japan, reached W111.64 in the Worldscale measure, or $9,721 a day when translated into average earnings, its highest since mid December last year. That compared with W109.28 or $8,920 a day on Tuesday and W102.86 or $6,779 a day last Wednesday.

Larger Long Range 2 or LR2, 75,000 tonne shipments on the Middle East Gulf to Japan route were at W97.50 or $13,310 a day, its highest since early April. That compared with W96.83 or $13,016 a day on Tuesday and W87.90 or $9,113 a day last Wednesday.

"In spite of several public holidays in the East during the last two weeks, we have seen a firm market on both LR1 and LR2," broker Fearnleys said on Wednesday.

"Currently the LR2 position list in the MEG is looking tight ... we are assessing the market at W97.5 MEG-Japan with a firming tendency."

Omar Nokta, senior analyst with Global Hunter Securities, said on Wednesday there had been 10 bookings transported on LR2 tankers so far this week versus a weekly average of 9 bookings.

"The LR market has been more active in recent days compared to what has been typical so far this year," Nokta said.

Rates for medium-range (MR) tankers for 37,000 tonne cargoes on the TC2 route from Rotterdam to New York were at W98.96, or $2,951 a day.

That compared with W98.54 or $2,845 a day on Tuesday and W111.46 or $5,720 last Wednesday.

In January, earnings reached their highest level since early August last year.

"With lower activity and ample tonnage available on the Continent, MRs ... have seen rates drop 15 (Worldscale) points since last week," Fearnleys said.

Rates for MR tankers on the U.S. Gulf (USG) to Europe route were negative at W70.36 or -$3,049 a day. That compared with W71.07 or -$2,987 a day on Tuesday and W80.00 or -$733 day last Wednesday.

In November last year, rates on that route rose to their highest level since earnings were published in June 2012, Baltic Exchange data showed. Buoyant demand for diesel products has boosted tanker activity on the U.S. Gulf to Europe route, known as the backhaul journey as vessels usually travel to the U.S. East Coast first and then pick up return cargoes.

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 David Evans)

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

EXMAR Orders Second FLNG from Wison

EXMAR NV has placed an order for a second Floating LNG Liquefaction Unit (FLNG) at Wison Offshore & Marine. Under the agreement, Wison will be responsible for the turnkey engineering,

Video: Crewman Medevaced from Oil Tanker

The U.S. Coast Guard (USCG) medevaced a Filipino crewmember from a tanker 23 miles south of Southwest Pass, Sunday.   Watchstanders with Coast Guard Sector New

Shipbuilding: NAT Finalizes Deal for Two New Tankers

On December 9, 2014, Nordic American Tankers Ltd. announced that preliminary contracts had been entered into with a South Korean shipyard, for the construction

Finance

Diana Shipping Announces $53.5m Drawdown

Diana Shipping Inc. announces signing and drawdown of a $53.5 million term loan facility with BNP Paribas; announces time charter contract for m/v Nirefs with Glencore   Diana Shipping Inc.

Maersk to Continue Russian Operations

Denmark's A.P. Moller-Maersk said its four subsidiaries with activities in Russia continue to operate as planned despite the recent sharp drop in oil price and the rouble's collapse.

NSRP Awards $11m for R&D Project Portfolio

The Executive Control Board of the National Shipbuilding Research Program (NSRP) has selected a new round of research and development projects for award, as part

News

Diana Shipping Announces $53.5m Drawdown

Diana Shipping Inc. announces signing and drawdown of a $53.5 million term loan facility with BNP Paribas; announces time charter contract for m/v Nirefs with Glencore   Diana Shipping Inc.

Maersk to Continue Russian Operations

Denmark's A.P. Moller-Maersk said its four subsidiaries with activities in Russia continue to operate as planned despite the recent sharp drop in oil price and the rouble's collapse.

Teekay Petrojarl Contracts Damen for FPSO Upgrade

Damen Shiprepair Rotterdam (DSR), part of Damen Shiprepair & Conversion (DSC), has been awarded an EPC contract by Petrojarl I LLC for the upgrade of its FPSO Petrojarl I.

 
 
Maritime Contracts Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2212 sec (5 req/sec)