Slower trade weighs on clean tanker rate gains

2013-06-04

Clean tanker rates for refined petroleum products on top export routes were steady on Monday with slower business keeping earnings capped. Rates for medium-range (MR) tankers for 37,000-tonne cargoes on the TC2 route from Rotterdam to New York were at W129.32, or $11,151 a day when translated into average earnings.

That compared with W130.79 or $11,377 a day on Friday and W135.42 or $12,458 a day last Tuesday. There was no data last Monday due to a public holiday.

"The Atlantic Basin has quieted in part due to smaller gasoline differentials between the U.S. and Europe," Omar Nokta with Global Hunter Securities said on Monday.

Last month, earnings reached their highest since mid February, helped by firmer bookings for gasoline cargoes to the U.S. and product shipments to Argentina.

In April last year, rates reached their highest since 2008 on a jump in U.S. gasoline demand. Since then, average earnings have remained volatile.

Long Range 1 tankers, carrying 55,000-tonne loads from the Middle East Gulf (MEG) to Japan, were at W93.96 or $5,190 a day.

That compared with W93.95 or $5,031 a day on Friday and W94.20 or $5,362 a day last Tuesday.

Larger Long Range 2 or LR2, 75,000-tonne shipments on the Middle East Gulf to Japan route were at W72.73 or $3,766 a day. That compared with W72.50 or $3,495 a day on Friday and W73.45 or $4,196 a day last Tuesday.

"There was little change in the LR1 market last week, but demand for LR2s remains weaker," Deutsche Bank analyst Justin Yagerman said on Monday.

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.

Source from : Reuters (Reporting by Jonathan Saul, editing by William Hardy)

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