Glencore’s ST Shipping & Trading has taken a modern VLCC on time charter in what brokers said is its first move on a trading vessel of this size in many years.
Market sources said ST Shipping has fixed Euronav’s non-scrubber-fitted, 299,999-dwt Dia (built 2015).
The trader’s chartering company has taken the vessel for 12 months at a reported rate of $35,500 per day, with an option for a further 12 months at $42,500 per day.
TradeWinds understands that ST Shipping has opted to trade the Dia in the Tankers International VLCC Pool, where it has been working under Euronav.
Tankers International officials were unavailable for comment. The outfit’s VLCC pool currently stands at 64 vessels.
A spokesman for Glencore said: “This is not something we would comment on.”
Tanker brokers told TradeWinds they could not remember the last time ST Shipping fixed a VLCC on time charter for trading. Previously, it has taken only vessels of up to suezmax size on period charter.
ST Shipping has, however, been using old VLCCs for floating storage and VLCC newbuildings on their maiden voyages for gasoil shipments. Brokers said ST Shipping intends to use the Dia for trading.
One commented that the rate, which is line with current VLCC time charter levels, appears “pricey” in today’s market, where similar vessels are pulling in around $10,000 per day or less on the spot market.
But he pointed out that daily levels were up in the mid-to-high $50,000 range in the fourth quarter of last year, and the fixture could yet prove profitable for the trader if rates improve in the second half.
Clarkson Research Services director Trevor Crowe told a London conference last week that tanker sector fundamentals look good, with the market expected to improve later in the year.
