Trafigura has reportedly launched another round of chartering for product tankers just as the overall market activity cooled down this month.
Brokers reported the trading giant as having fixed the 52,000-dwt Olaf and Sven (both built 2010) from Tufton Oceanic for six months at $10,000 per day.
Greek owner Enesel was said to have secured a one-year charter for the scrubber-fitted, 115,500-dwt Sparto (built 2020) from Trafigura at $19,000 per day.
It was also reported that Trafigura had fixed two MR tankers from Horizon Tankers on short term charters, and the 37,300-dwt Advantage Park (built 2006) from Advantage Tankers for three months. But further details are not available.
Trafigura has declined to comment on the fixtures. TradeWinds has approached the shipowners for comments.
Since October, Trafigura has taken four LR2s and seven MRs on period charters lasting from three to 12 months, VesselsValue data shows.
The trader has been one of the most active charterers in the product tanker market this year and generally preferred short-term deals, according to brokers.
Weak market conditions
Despite Trafigura’s chartering spree, the overall period market activity has slowed down as charterers cherry-pick through vessels in a weak market.
Braemar ACM recorded five period fixtures of product tankers in the week to 4 December, compared with nine fixtures in the previous week.
But the brokerage stuck an optimistic tone in a research note: “There are more LR2 enquiries for both short-term and increasingly longer-term by both traders and some oil companies — whether that is on a fixed-rate or profit-share basis.
“Flexibility and optionality are still important, but it is warming to see charterers willing to discuss longer-term fixtures.
“MRs are relatively busy, but mostly for shorter-term charters, although there has been the odd longer-term fixture in recent weeks.”
Giuseppe Rosano, director at brokerage Alibra Shipping, said shipowners have to swallow “very weak” rates in order fetch period deals though.
Most deals only last for several months and are attached with optional lengths favouring charterers, underscoring the difficult environment for shipowners, Rosano added.
“There is the realisation in the market is that it doesn’t look to be great,” he said. “They need to take what they can get.”
With a lack of boost from the peak demand season due to the coronavirus pandemic, period rates for product tankers have fallen to their weakest levels in about two years.
Many analysts believe tanker rates will remain low for another six to 12 months before global oil demand returns to the growth track.
“Owners are just trying to get over the hump,” Rosano said.
