Concordia Maritime is identifying a reluctance from charterers to commit to longer-term deals in strong product tanker markets.
The Swedish tanker company’s chief executive, Erik Lewenhaupt, said in a market update that October was another good month in all wet markets, and sentiment for the winter is firm.
However, the global basket for MR tanker rates trended lower, while large crude tankers substantially increased earnings.
The average MR spot figure was $29,600 per day last month, down from $41,150 per day in September.
Year-to-date average spot earnings now stand at $23,350 per day. This is up from $3,000 per day at the start of 2022.
But levels vary weekly between east and west, depending on demand and fleet positions, Lewenhaupt said.
“The continued positive sentiment has also increased owners’ ideas for period charter,” he added. “While owners prefer to lock in longer periods, charterers try to negotiate shorter employment.”
Concordia pegs a one-year MR time charter at $28,100 per day, a big leap from $25,250 per day in September.
A three-year deal is quoted at $18,800 per day, up a little from $18,250 per day in September.
Secondhand market busy
The sale-and-purchase market remains active, Lewenhaupt said, with the number of tankers changing hands this year now surpassing the total for the whole of 2021.
MR prices in all age groups stayed flat in October, however.
A 10-year-old MR was worth $14m in 2017 and was valued at nearly $30m in early October. The price was only $17.5m in January.
Activity in newbuilding ordering remains low, as prices are historically high and yards are booked up with gas and container ships.
Vessel recycling is also weak due to the high rates and the firm US dollar, making tonnage expensive for scrap buyers, Concordia explained.
