Spot rates for LR2 product tankers on the benchmark trade between the Middle East and Asia rallied for a fourth straight day as the Gulf market burst back into life.
The Baltic Exchange’s assessment of spot earnings between the Saudi port of Ras Tanura and Yokohama, Japan, leapt by 36.4% since Monday to close the week at more than $26,700 per day.
That included a one-day gain of 11.4% on Friday, which marked the route’s highest level for the route since 1 October.
LR2 rates on the route known as the TC1 had risen as high as $31,700 per day in September before spiralling downwards in a slump that some blamed on crude tankers muscling into the clean products trade.
On a Worldscale basis, rates on the benchmark TC1 route rose to WS 133 on Friday, after starting the week at WS 115, a rate that had remained unchanged since 4 October.
“LRs in the Middle East Gulf began showing signs of recovery after some time paused at WS 115,” Baltic Exchange analysts said.
Howe Robinson Partners, a UK tanker broker, estimated that average earnings for LR2s rose to $27,800 per day on Thursday, from $24,700 per day on Monday.
That is considerably less than an LR2 tanker can earn in today’s period charter market. Pertamina International Shipping is reported to have scored a 36-month fixture at $40,000 per day for its recently acquired 109,900-dwt STI Lily (built 2009).
Rates for smaller LR1 tankers also improved this week.
Spot earnings on the route from the Middle East to Japan rebounded to WS 137 from WS 124 on Monday.
That equates to a jump from $13,500 per day on Monday to $17,600 per day at the week’s close.
Howe Robinson assessed average LR1 earnings at $21,300 per day on Thursday, up from $21,200 per day on Monday.
