Oil firms are still capable of fixing tankers from Japanese and Greek owners at lower rates amid the depressed mood in the period charter market, where activity has remained limited during the summer holidays.
Brokers reported Mitsui OSK Lines recently chartered out the 302,000-dwt VLCC Kasagisan (built 2006) to IndianOil for 12 months at $22,000 per day.
The deal can be extended by another year at $25,000 per day.
Also, Vitol reportedly extended the charter for Enesel’s 157,000-dwt suezmax Lord Byron 21 (built 2021) for three to six months at $15,500 per day.
The trader was said to have previously secured the scrubber-fitted ship on a six-month charter at $21,500 per day.
MOL declined to comment on the fixture. TradeWinds has approached IndianOil, Vitol and Enesel for comments.
“Terms on these Indian deals can be a little onerous on the owner, and this will be delivery at the foot of the Middle East, necessitating a ballast for delivery on owner’s account,” Braemar ACM Shipbroking said in a note.
“In general, one should look at this deal as a steady level for this calibre of ship.”
While trading tends to be quiet in summer, the brokerage suggested market sentiment was especially hit by weak spot earnings.
“Big decisions are harder to come to at this time of year. But this year, we are maybe clutching at straws and using that as an excuse,” Braemar said.
“The much more compelling reality is that this market is well and truly nailed to a bottom level that, for now, has no bull argument. So traders and oil company representatives alike cannot argue the case for taking cover.
“Even though a ship today would still be about the lowest that one could achieve, there is still risk, even at these meagre levels, of making a loss.“
On the product side, brokers said some MRs managed to find period employment as spot rates recovered.
Spring Marine reportedly fixed the 50,100-dwt Bolero (built 2009) to Petrobras on a one-year charter, which can be extended by another 12 months. The rate level is unknown.
Lukoil subsidiary Litasco was said to secure the 50,470-dwt Nave Orbit (built 2009) at $10,250 per day on a three-month charter, attached with a three-month option at $12,500 per day.
The Navios Maritime Acquisition-operated ship was thought to have been previously chartered to ExxonMobil for 11 months at $14,000 per day, but this cannot be confirmed.
Spring Marine, Lukoil and Navios did not respond to emails seeking comments for the fixtures.
