Lykiardopulo family-owned Neda Maritime has fixed one of its LR2 vessels to Trafigura for a year at a stronger-than-expected rate, reflecting firm sentiment in the product tanker market.
The 110,000-dwt Suvretta (built 2008) was fixed at $21,000 per day, European brokers said. The prevailing one-year rate for an LR2 is $17,500 per day, based on Fearnleys’ assessments.
Neda and Trafigura did not respond to requests for comment. Neda bought the tanker for $91m when the market peaked in June 2008.
Trafigura duo
Another Neda LR2, the 110,000-dwt Stellata (built 2016), was last month reportedly fixed for a year by Trafigura at $15,400 per day. Its sistership Seriana (built 2015) is on charter to Trafigura until September at $15,500 per day.
Meanwhile, the Thenamaris-owned 114,000-dwt tanker Searunner (built 2017) has been reportedly relet by Koch Industries to ST Shipping at $20,750 per day for up to eight months.
Maritime Strategies International estimates the LR2’s one-year rate at $18,000 per day.
IMO 2020
The impending IMO 2020 legislation is expected to drive more cross-regional distillate trades and remove some tonnage from trading for scrubber fitting, supporting product tanker rates this year and next, according to analysts.
A Bloomberg survey of shipping analysts shows the median forecast of average spot LR2 earnings was $19,000 per day this year, up from $12,000 per day in 2018.
Rate 'coming down a bit'
Still, the recent strong Greek LR2 period charters were signed two weeks ago when spot LR2 earnings on the benchmark Middle East-Japan trade spiked above $20,000 per day, one broker said. “It [the rate] is coming down a bit now,” he added.
The Suvretta is reportedly fixed to be delivered in South Korea, while the Searunner delivered in Singapore. This may have also boosted rates as the delivery locations are close to export hubs.
Among other LR2 deals, Aegean Shipping Management has reportedly fixed out its 112,000-dwt newbuilding Green Aura (built 2019) to Vitol, while Torm has chartered its 115,000-dwt Torm Herdis (built 2018) to Koch.
Both charters will last for one year. The rates have not been disclosed.
