Transatlantic clean tanker rates eye modest gains
Transatlantic tanker rates for refined petroleum products on top export routes were broadly steady on Monday with firmer cargo interest giving a modest lift to the transatlantic market, Reuters reports.
Rates for medium-range (MR) tankers for 37,000 tonne cargoes from Rotterdam to New York moved on Monday to W102.71, or $2,545 a day when translated into average earnings, from W101.14 or $2,218 a day on Friday and W103.33 or $2,662 a day last Monday.
Brokers said there had been light bookings in recent days helped by arbitrage related trade.
"With prompt tonnage looking reasonably tight, gains could be made this week," broker SSY said on Monday.
Average earnings per day are calculated after a vessel covers its voyage costs such as bunker fuel and port fees. Negative rates indicate costs are greater than earnings.
In April last year, rates reached their highest since 2008 on a jump in U.S. gasoline demand, helping reduce the number of tankers available for hire. Since then, average earnings have remained volatile.
Analysts said reduced refinery capacity in the Atlantic Basin could boost long-haul demand for the wider products tanker sector in coming years, helped by the delivery of fewer tankers.
Typical Long Range 2 or LR2, 75,000 tonne shipments on the Middle East Gulf to Japan route were at 106.32 on Monday in the worldscale measure of freight rates, from W107.10 on Friday and W107.91 last Monday. Last month rates hit their highest level since late October of 2011.
Long Range 1 tankers, carrying 55,000 tonne loads from the Middle East Gulf to Japan, were at W125.50 on Monday, from W126.64 on Friday and W130.50 last Monday.
"The LR1 market, which has been firm in the Pacific, lost ground as Japanese demand moderated week-on-week," Deutsche Bank said.
In the Mediterranean, 30,000 tonne shipments ex-Algeria to southern Europe were at W138.89 on Monday, versus W139.38 on Friday and W138.72 last Monday.
