Okeanis Eco Tankers has been busy securing charter cover for its vessels as freight market prospects remain uncertain during the Covid-19 pandemic.
The Oslo-listed tanker player has scored charters for three of its vessels on terms ranging from nearly three months to a year.
The Greek shipowner recently fixed out the 319,000-dwt Nissos Kythnos (built 2019) to Occidental Petroleum for 11 months at $30,000 per day, market sources said.
The VLCC is expected to be delivered in China in mid-December.
Clarksons Research estimates the prevalent rate for a one-year charter of a similar vessel to be $28,500 per day, so the reported rate appears slightly higher than market level.
Separately, Okeanis chartered out the 159,000-dwt suezmax Kimolos (built 2018) to Trafigura for at least 80 days at $20,000 per day. The charter can be extended to a maximum of 185 days at $23,000 per day.
The 114,300-dwt LR2 Nissos Heraclea (built 2015), which completed a special survey in Turkey recently, was fixed to ST Shipping & Transport for six to 11 months at $19,000 per day.
Charter activity picks up
Following months of limited trading, oil majors and traders have recently returned to the period charter market.
The development comes as spot rates begin to bottom out, even though the upside appears limited due to weak supply-demand fundamentals.
Both spot and period rates have remained weak due to reduced floating storage requirements, the Opec+ supply cut and low oil consumption during the Covid-19 outbreak, according to analysts.
“In the crude carrier market, we continue to see time charter equivalent earnings holding at very low levels,” Intermodal Shipbrokers’ researchers said in a note.
“With demand still weak, an upturn for the freight market in the remaining weeks of the year seems significantly uncertain.”
Headwinds next year
Backed by the Alafouzos family, Okeanis has been securing time charters in recent months to mitigate market risks.
In September, the owner agreed to charter out the 319,000-dwt Nissos Donoussa (built 2019) to Unipec for one year at $34,000 per day.
The 158,000-dwt Nissos Sikinos and Nissos Sifnos (both built 2020), which were delivered in September, were also fixed out for three years.
In its latest quarterly report, Okeanis said the tanker market would face headwinds during the first half of 2021.
“Oil demand will remain subdued until the release of [a Covid-19] vaccine and treatment therapy,” said the Oslo-listed company, adding that the front-loaded newbuilding delivery schedule also presents challenges.
Okeanis has a fleet of 17 crude and product tankers, all of which are fitted with scrubbers as per the company's strategy.
