Centrofin has secured a six-month charter for an LR2 product tanker at a strong rate, benefiting from record spot earnings in the red-hot segment, according to market sources.
The Greek shipowner chartered the 105,700-dwt Namrata (built 2008) to Gunvor Group's Clearlake Shipping at more than $53,000 per day, one of the highest rates achieved for similar deals in recent years.
While activity in the period charter market has slowed since last week, with many players away for holidays, sentiment remains strong for large ships, thanks to healthy floating storage demand.
Before the May Day break and Golden Week started, several LR product tanker owners secured strong deals ranging from six to 12 months.
Brokers reported Shell fixed the 105,270-dwt Pro Triumph (built 2009) from SK Shipping for six months at $50,000 per day. The ship is due to be delivered in South Korea between 22 and 23 May.
Maersk Tankers was said to have chartered the 109,996-dwt LR2 Pioneer (built 2008) to Ampol for four-month storage at $42,000 per day.
A Navios Maritime Acquisition LR1 operating in a Navig8 pool was reported fixed out for a year at $30,000 per day. The 74,695-dwt Nave Atropos (built 2013) by Clearlake.
TradeWinds has approached the owners and charterers for comment.
Floating storage drives up rates
Oil majors and traders have been mostly interested in charters of up to six months plus storage options, forecasting an oversupplied oil market for much of the year, according to brokers.
However, with spot earnings at all-time highs, some shipowners — including product carrier giant Scorpio Tankers — have suggested they are not in a rush to secure short charters.
With large tonnage removed from trading for storage use, spot earnings of LR1s have been above $100,000 per day and of LR2s above $150,000 per day in the past week.
Kpler data showed 72.8m barrels of clean petroleum producers were stored at sea on Monday, a jump from 23.3m barrels a month ago.
A total of 26 LR2s and 35 LR1s were used to store clean products for at least seven days as of Monday, according to Braemar ACM.
“Clearly the broader tanker market has benefited from the need for floating storage as land-based storage has filled,” analysts at investment bank Stifel said.
“Initially this was demonstrated in the crude tanker market and more recently pushing refined product tanker rates to record levels.”
Stifel said newer coastal refineries are still operating at full capacity in present market conditions.
“Consequently, the need for product tankers (particularly large LRs) for floating storage is very high,” it said.
