Chevron has reportedly taken three suezmax tankers on short period fixtures as demand uncertainty continues to curb appetite for long-term charters.
Market sources said the US oil major fixed Sovcomflot’s 163,500-dwt Aleksey Kosygin (built 2007), a coated tanker recently involved in shipping crude.
The company also booked Eastern Pacific Shipping’s 157,800-dwt Diamondway (built 2016) earlier this month.
The pair were both put on index-linked charters that will last for 40 to 60 days.
Separately, Chevron chartered the 150,000-dwt Ottoman Sincerity (built 2017) from Gungen Maritime & Trading for one to three months at more than $14,000 per day.
The deals suggested the major wanted to control some tonnage during the winter peak demand season but had little appetite for longer deals, some sources said.
“Charterers in general have little interest for any period deals longer than six months with oil market uncertainty,” a tanker owner said.
“Crude demand is weak due to the coronavirus pandemic, but price is supported by Opec cuts.”
TradeWinds has approached Chevron and Sovcomflot for comment, while Eastern Pacific and Gungen declined to comment on the deals.
But Gungen director and chief commercial officer Osman Gungen told TradeWinds: “The suezmax market is in a very poor state with many voyages paying negative earnings.”
Average suezmax earnings on the Baltic Exchange was assessed at minus $963 per day on Monday. The index has dipped into the negative territory since 12 October, nearing its all-time low.
Brokers said market sentiment for the coming winter remains bearish due to persist vessel oversupply across the tanker spectrum.
“Maybe charterers just do not need many ships,” one broker said.
While seasonal oil demand is expected to pick up during winter, most market players do not expect increased shipments as refiners can draw down from their crude inventories.
“I think this winter is going to be very, very quiet,” a broker said. “It’s not going to be a usual peak demand season.”
