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

Tanker Trends

MARAD Seeks Comments on Proposed Policy for Deepwater Export Applications

The Maritime Administration (MARAD) is seeking comments on the agency’s proposed policy to accept, evaluate and process license applications for the construction

Oil Drillers Group to Fight U.S. Export Ban

More than a dozen U.S. oil producers have joined to lobby the federal government to reverse the 40-year-old ban on U.S. crude exports, a move that supporters hope

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

Finance

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens.

News

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

UN Authorizes Ship Inspections Near Somalia For Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Pipelines Pod Propulsion Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
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: 0.2566 sec (4 req/sec)