Product tanker markets east of the Suez Canal have shown signs of life as spot earnings improve on several main trading routes.
The Baltic Exchange estimated that the Pacific MR basket rate rose to $9,136 per day recently, compared with $2,999 per day at the beginning of this month.
Market sources said the gains came in line with increased loading activity in India and the Middle East.
Clarkson Research said MR freight rates rose to Worldscale 180 as of Friday, representing a gain of close to WS 20 since 2 August.
Sentiment among owners is likely to firm in the coming days as 14 cargoes remains unfixed, the research arm of shipbroking giant Clarksons said.
As for larger tankers, LR rates have been rising in the Middle East Gulf on a tightening tonnage list.
Most analysts believe Middle Eastern naphtha exports to Asia will be supported by healthy petrochemical demand in the second half of this year.
Clarksons Platou Securities assessed spot earnings of a non-scrubber, non-eco LR2 for the Middle East Gulf to Japan route at $10,000 per day on Monday, up 50.9% since 2 August. LR2 earnings rose 85.2% to $8,800 per day.
“Owners will take pleasure in the fact that the majority of ships on subs are on for long-haul cargoes and as a result will not be back on the list for quite some time,” Gibson Shipbrokers said in a note. “Expect this momentum to continue.”
In contrast, product tanker markets in the western hemisphere are weakening despite decent chartering activity.
Brokers said shipowners were giving growing due to increased vessel supply amid a large number of ballasting ships.
Spot earnings of a non-scrubber, non-eco MR for the northwest Europe-US Atlantic coast route fell to $6,300 per day on Monday from $7,200 per day on 2 August, according to Clarksons Platou.
“Charterers will be hoping for repeat success ... and if enquiry levels don't pick up, there are little excuses available to prevent this occurring again,” Gibson said.
Spot MR earnings on the US Gulf to north-west Europe route decreased from $4,600 per day to $2,600 per day.
“Despite a continuance of healthy cargo volume in the US Gulf, once again excess tonnage proved to be the difference maker,” US-based tanker broking house Charles R Weber said in a note.
“Rates do not appear to have much room to fall as earnings remain very low and most likely will hold in the short term.”
