Danish product tanker owner Torm is expecting the trend for more period charter cover to ramp up ahead of a stronger winter market.
Asked by Fearnley Securities analyst Oystein Vaagen on a webinar if Torm would be looking to increase its term cover for the fleet, chief executive Jacob Meldgaard said: “I think if we can identify A1 customers — and we’ve got a lot of them who are there — to pay at or above what we think is the fair rate, we will definitely be open to that discussion.”
Brian Gallagher, head of investor relations at crude tanker owner Euronav, had earlier told the webinar that his company’s latest two-year VLCC charter is “just the start” in that market.
Meldgaard said: “And I think I agree with Brian: the same story that has been on the Vs, I think will play out on the product market, that as we come into this winter season we will see more clients who will also decide to look in that direction of taking more term commitments on vessels.
“And of course, we and others will be playing for that at that time. So yes, but I think the time will come a little later.”
Rates for one-year MR tanker charters have been on the up.
TradeWinds has reported this week that Swiss trader and shipowner Montfort bolstered its fleet with period charter agreements for four such ships.
Brokers said it has taken two vessels from Yasa Tankers for a year-and-a-half at $26,500 per day, a Japanese unit for a year and 17 weeks at $27,000 per day, and a Singapore-owned vessel for $27,500 per day over 12 months.
Swedish owner Concordia Maritime had said in a market update that one-year MR time charters were previously $25,000, down from $30,000 in January.
Meldgaard was also asked about the possibility of more secondhand deals for his company.
“The S&P market is obviously every day open,” he said. “We are open for discussions and I think in the team that we have doing nothing but looking at that, they will every day be looking at potential deals.
“Obviously, the share price will be fluctuating as we speak and, from time to time, be above NAV [net asset value] and, from time to time, be below. But that’s really not affecting our investment decisions at this stage.”
