Greek owner Polembros Shipping has fixed its two scrubber-fitted suezmax newbuildings on short period charters — suggesting that market players are becoming cautious in the period market, due to uncertain demand as a result of the coronavirus outbreak.
Market sources said the vessels were fixed on term charters for 45 to 90 days. Previously, period deals for scrubber-fitted tonnage have generally lasted for at least 12 months.
Polembros chartered out the 157,000-dwt Humble Warrior (built 2020) to Trafigura at $30,000 per day. It is expected to be delivered between 8 and 10 March.
The rate was close to spot earnings, according to brokers.
Rates for short charters tend to “vary massively depending on where the ship is being delivered and re-delivered”, said a London-based broker.
The 150,000-dwt Resilient Warrior (built 2020) is chartered to Vitol for the same period at an unknown rate.
Polembros confirmed the trader had taken delivery of the vessel.
Looking forward, market participants are expected to stay vigilant in the period market before a better picture of oil and tanker demand emerges.
“The Covid-19 situation is not getting any better …We are seeing charterers re-evaluate their positions,” Braemar ACM said.
“Owners seem to be more optimistic and expect a firm rebound when things normalise, but are understandably cautious as to when that might be.”
Hybrid scrubbers
The Spiros Polemis-controlled owner bought the tankers from compatriot Evangelos Pistiolis in 2018, when they were under construction at Hyundai Heavy Industries.
Some market sources said the price tag was $65m apiece, while others suggested it was lower.
As part of the deal, the vessels are fitted with Alfa Laval’s hybrid scrubbers that allow the ships to operate in waters where open-loop scrubbers are banned.
The two Liberia-flagged vessels are odd ones for Polembros, which generally avoids installing exhaust gas cleaning systems on its ships. It prefers to use marine fuel with no more than 0.5% sulphur content to meet the IMO 2020 regulation.
The company operates eight suezmax and five aframax tankers as well as four newcastlemaxes, one capesize, three post-panamaxes, one kamsarmax and one handysize bulker.
According to the company’s website, Polembros currently does not have any ships on order. Managing director George Vakirtzis told TradeWinds last November that the company was looking to add suezmax or aframax newbuildings.
