Gunvor subsidiary Clearlake Shipping has reportedly spearheaded a surprise chartering spree for MR product tankers in the period market.
Brokers report Clearlake as behind the fixtures of the 50,000-dwt BW Lioness, BW Leopard (both built 2014) and BW Osprey (built 2015) from Hafnia in early February for 12 to 18 months at $14,250 per day.
The company was also said to have fixed one-year charters for the 50,000-dwt Hellas Revenger (built 2016) from Latsco Shipping at $14,500 per day and the same-capacity Torm Solution (built 2019) from Torm at $15,300 per day.
The Torm vessel has scrubbers installed, while the others do not.
Clarksons Research estimates the one-year rate for an eco MR at $14,250 per day.
“Unexpectedly, some traders have concluded a flurry of fixtures and have each taken a handful of vessels between them,” Braemar ACM said in a note.
“Nearly all these vessels are eco vessels. With the forever rising bunker prices, charterers are looking for value in the consumptions,” the brokerage added.
Among other reported deals, Trafigura chartered the 50,000-dwt STI Bosphorus (built 2017) from Scorpio Tankers for three months.
Stena Bulk was said to have fixed the 50,000-dwt Largo Sun (built 2016) from Wallem for one year at $13,000 per day.
Also, Norden reportedly has taken the 50,100-dwt Zefyros (built 2013) from Benetech Shipping for 12 to 15 months at $12,300 per day, and the deal can be extended by a year at $13,700 per day.
Trafigura and Norden declined to comment. Scorpio, Wallem and Benetech did not respond to requests for comment by TradeWinds' press time.
“This injection of TC [time charter] fixtures has certainly driven some momentum into the market,” said Braemar, referring to the busy activity for MRs.
“One might feel that we are now in the small pocket of opportunity where we will see more deals of a similar sort concluded over the next couple of weeks.”
Bearish outlook
The renewed appetite for period charters has come despite most analysts expecting product tanker earnings to stay depressed for most of 2021.
In its latest quarterly forecast, Jefferies said spot earnings of an eco MR would average $12,500 per day this year before rising to $16,500 in 2022.
Inventories overhang is to pressure rates in the first half of 2020, but the market will gradually recover due to a small orderbook and more cargo flows to Europe, according to the investment bank.
“There will be a natural attrition of older, less-competitive refineries in Europe, especially for those that have been shut-in during Covid-19,” Jefferies said. “More refined products will have to be imported into Europe.”
