Charter activity for MR tankers has picked up in the period market this month, with several vessels reported fixed for three years or more.
The growing appetite among charterers reflects increasing optimism in the products trade, as global oil inventories continue to fall amid signs of demand recovery, tanker experts suggested.
Among deals, Greece’s Sun Enterprises reportedly secured three-year charters for the 50,200-dwt Alfios and Athina (both built 2020) from Chevron at $15,750 per day.
The charters can be extended for a fourth year at $16,750 per day and a fifth at $17,750 per day.
Brokers also reported that Trafigura took the 50,000-dwt SM Osprey and SM Falcon (both built 2017) from Korea Line for three years at $15,250 per day.
For shorter deals, ST Shipping and Transport fixed the 51,100-dwt High Adventurer (built 2006) from d’Amico International Shipping and the 51,600-dwt Doric Pioneer (built 2013) from Chios Navigation for at least one year.
The Glencore subsidiary will pay $14,000 per day for each of the charters, which can be extended by another year at $15,000 per day.
Also, BP reportedly chartered the 50,100-dwt GH Parks (built 2009) from Hayfin Capital Management for six months at $12,000 per day, with an option to extend for a further six months at $13,000 per day.
Stena Bulk fixed the 50,000-dwt Celsius Portsmouth (built 2021) from Celsius Shipping for $15,000 per day on a six-month charter, attached with a one-year option at slightly more than $17,000 per day.
Bullish for 2022
“The rate is strong considering the vessel is Chinese-built and without scrubbers, and especially the optional rate is a high rate indicating that the charterer is bullish about the market for 2022,” brokerage Alibra Shipping director Giuseppe Rosano said.
Stena and d’Amico confirmed their charters but refrained from discussing the rates. Chevron, Trafigura, Glencore and Hayfin declined to comment. TradeWinds has approached Sun Enterprises, Korea Line, Chios Navigation, Celsius Shipping and BP for comments.
The chartering spree came after spot MR earnings in the Atlantic trade briefly spiked during the five-day outage of the Colonial Pipeline, a vital fuel artery in the US, the world’s largest oil consumer.
“After the Colonial Pipeline blip … things are starting to calm down again [in] the spot market, which means owners are again more willing to discuss time charters,” Braemar ACM Shipbroking said in a note. “You get a sense that confidence is returning, albeit slowly.”
Some analysts believe product tanker rates could enjoy an upturn in the coming months, with the reduced oil supply overhang expected to trigger more seaborne trade.
“Global oil inventories have fallen significantly this year with OECD stocks now close to their five-year average. This sets up constructive demand-side conditions for trade,” Maritime Strategies International said in a monthly report.
The latest OECD data shows product inventories fell by 31.1m barrels, to 1.47bn barrels, in March, with large drawdowns in gasoline and middle distillates stocks amid mass vaccination in Europe and the US.
“The reallocation of inventories from net-long regions to net-short regions … would support clean product tanker demand,” Alphatanker said. “There is much for product tanker owners to look forward to in the second half of the year.”
