Major trading houses have carried out a handful of short-term deals in an otherwise listless time-charter market for tankers.
Brokers said Vitol recently chartered the 157,000-dwt Kanaris 21 and the 158,000-dwt Captain Lyritsis (both built 2021) from Enesel for three to six months at $14,500 per day.
The trader was also reported to have fixed the 156,500-dwt newbuilding Crude Zephyrus from Metrostar Management for one to three months at $13,000 per day. Clarksons Research data shows the ship will be delivered from New Times Shipbuilding in August.
All the suezmaxes are installed with scrubbers.
Separately, Trafigura reportedly secured the non-scrubber, 114,000-dwt Antonis (built 2017) from Ensel for three months at $10,250 per day, and the deal can be extended for another six months at $13,250 per day.
Brokers said Trafigura also took the 112,000-dwt newbuilding Calypso from Samos Steamship for six months at $16,250 per day.
Sumitomo Heavy Industries will deliver the scrubber-fitted vessel later this year.
TradeWinds has approached the tanker owners and charterers for comments.
Most market players have refrained from sealing term deals, with spot earnings pegged to multi-year lows for all vessel classes, some brokers said.
“Although some do buckle and accept their fate, especially for the short-term [deals],” Braemar ACM Shipbroking said in a note.
Suezmax charterers could struggle to make a profit if they need to pay more than $13,000 per day for a deal lasting three to six months, a London-based broker said.
“As spot earnings are so low, period charterers cannot make any money out of their deals,” the broker said.
“They possibly could earn more than their period rates in the fourth quarter, but they will lose money in the third.”
While many tanker experts have written off this summer for any sustainable rate recovery, opinions remain mixed on whether the market can enjoy a strong seasonal upturn during the fourth quarter.
Optimists believe strong oil demand recovery amid mass vaccination will drive tanker rates higher, while others point to severe oversupply amid limited scrapping and continued newbuilding deliveries.
Fearnley Securities expects VLCC earnings to average $68,000 per day, suezmaxes at $51,000 per day and aframaxes at $39,000 per day in the fourth quarter. All those figures are much higher than current spot earnings.
“I imagine the tanker market will still be challenging overall,” Gibson Shipbrokers research head Richard Matthews said, striking a more cautious tone.
“We expect volatility to increase in the fourth quarter as the market gets tighter and weather-related issues come into play.”
