Time charter rates for MR product tankers have risen to their highest level for two years thanks to a strong spot market.
Average earnings for eco ships remain strong this week at $47,400 per day, Clarksons Platou Securities calculates.
This is down by 14.1% week on week as numbers from the US Gulf have eased somewhat.
Rates had topped $56,000 a week ago as tonne miles increased due to cargo owners moving away from short-haul Russian diesel exports to Europe.
Recent strength is still having a knock-on effect on term deals, however.
“As a result of the strong spot market, time charter rates have also started to come to life,” the investment bank said.
A one-year deal for an eco MR vessel is being assessed at $17,750 per day, up $2,000 since January.
This is also the highest level seen since May 2020.
In the smaller MR spot segment, UK shipbroker Howe Robinson Partners said Worldscale (WS) 450 had been achieved for a 30,000-dwt MR cargo heading cross-Mediterranean.
This equates to a whopping $92,860 per day, compared with an average of $29,600 so far this year.
MR stand-off
Owners have been pushing for a repeat, causing a stand-off with charterers.
“A few more itineraries have firmed up in [the] west Med for the 20-25 [April] window, so charterers seem to have opted for the waiting game,” the UK shop said.
“We will see … if this pays off, but do expect more enquiry to come still, up to 25 April dates after this long weekend,” the broker added.
Chemical tanker rates have continued to move higher, with earnings so far in the second quarter 6% higher than in the previous three months.
“The resurgent MR product tanker market should, in our view, continue to move competing MRs out of the chemical tanker trade and back to the clean petroleum trade,” Clarksons Platou analysts Frode Morkedal and Even Kolsgaard said.
“Underlying strong demand for biofuel and chemical volumes out of Asia has kept the region humming in the past few weeks,” they added.
VLGCs on the up
On the gas carrier side, average VLGC earnings rose more than 10% last week to $40,000 per day, having slipped to as low as $8,000 in early March.
Strong oil prices have boosted demand for LPG as feedstock for chemical plants.
Brokers said there are few available ships in Asia, which should support VLGC owners’ rate ideas in the Middle East Gulf in the near term.
