Shell has extended its charters on three product tankers, taking advantage of falling levels in the LR2 market and undercutting market rates on MR vessels.
The Anglo-Dutch giant has struck a deal to hold onto the 112,000-dwt Clio (built 2008) from Germany’s TB Marine for another 12 months, according to European shipbrokers.
The LR2 tanker will earn $14,750 per day under the extension, which is down on the $22,000 per day it had been earning on its prior two-year charter to Shell.
TB purchased the Clio from Italy’s Zachello Group for $33.5m in August 2015.
The company did not respond to requests for comment.
The charter comes as period rates for LR tankers are slipping, with London broker Alibra Shipping estimating such charters are worth $14,350 per day — down 2.7% on the prior week.
Shell has also been busy in the MR sector, where the company has extended the charter of the 47,000-dwt Sunny Dream and Sunny Day (both built 2005) from M Sea Capital.
The tankers have been locked in for another year with options that could extend the deal for up to 12 months.
M Sea Capital did not reply to requests for comment.
The rate is believed to be $12,750 per day for each ship, up from $12,000 per day the two achieved over the past year, but still lower than the rates similar vessels are currently fetching.
ExxonMobil fix
Oil major ExxonMobil has reportedly fixed the 47,000-dwt Tavrichesky Bridge (built 2006) from Russian owner Sovcomflot (SCF Group).
The company booked the tanker for a year with delivery in the US Gulf for $13,750 per day.
Over the past year, the tanker was on charter to Koch at $12,750 per day.
Alibra’s latest estimate for one-year MR charters held firm at $13,500 per day.
The MR period rates are yielding a thinner spread than their larger cousins, as Baltic Exchange spot rates ended last week at nearly $11,200 per day.
