Big-name charterers were all out fixing period deals for aframaxes and their LR2 product tanker cousins in recent weeks, with firming spot earnings in those segments.
Spot aframax and LR2 earnings rose to multi-month highs earlier this month as tonnage supply tightened on buoyant regional shipments.
Brokers said oil firms hence became more determined to take period coverage because they could at least break even in the first voyages.
ExxonMobil was reported to have chartered Tankerska Plovidba’s non-scrubber, 114,000-dwt aframax crude tanker Frankopan (built 2017) for three years at $21,000 per day.
Brokers said that Trafigura had taken the 110,000-dwt Ellie Lady (built 2009) and 112,000-dwt Arizona Lady (built 2019) from Western Shipping for 12 to 18 months.
The older ship was fixed at $20,000 per day and the Arizona Lady at $23,000 per day. Both LR2s are fitted with scrubbers.
ExxonMobil and Trafigura declined to comment on the deals. Tankerska Plovidba and Western Shipping did not reply to emails seeking comment.
Aegean takes cover
Meanwhile, Aegean Shipping Management has managed to secure front cover for all the aframax newbuildings that it ordered from Cosco Shipping Heavy Industry.
The Greek shipowner reportedly fixed the 113,000-dwt Green Adventure and Hull 986 and Hull 987 to Vitol for two years for $21,000 per day plus profit sharing, and each charter is attached with two one-year options.
TradeWinds earlier reported that Trafigura had taken the 113,000-dwt Green Admire for two years at $23,000 per day. The deal can be extended for 12 months at $26,000 per day and a further year at $29,000 per day.
The Green Adventure, Green Admire and Hull 986 are scheduled to be delivered in 2022. Hull 987 is due in 2023. None of the crude tankers will be installed with scrubbers.
Aegean confirmed the vessels were chartered to Vitol and Trafigura but declined to provide details. The charterers declined to comment.
Stalemate
Looking forward, the market is turning quiet as owners and charterers assess tonnage balances following a six-day blockage at the Suez Canal.
Few deals are expected to be concluded before Opec and its Russia-led allies decide on their May production levels during the ministerial meeting on Thursday.
Aside from forecast market volatility from those events, Braemar ACM Shipbroking said shipowners are seeking higher rates but charterers appear hesitant.
“Many charterers…still believe that the second and third quarters will be the typically lower earners of the year,” the brokerage said in a note.
Braemar added that it remains “tricky” to see whether mass vaccination and easing lockdown measures would lead to a reversal of the seasonal pattern this year.
