BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR PRIVACY & COOKIE NOTICE
X

Platts Marine


A closer look at Platts shipping coverage


Home Bunker Fuel Tankers

Bunker Fuel




May 20, 2018

Tankers

Markets

Clean Tankers Commentary

New York (Platts)--02Jan18/0745 pm EST/ 0045 GMT

The East of Suez Long Range tanker market was sluggish Tuesday amid limited chartering activity at the start of the new year. Many participants were keeping to the sidelines or were away on holidays. Overall sentiment was flat, as the same numbers kept being repeated for the different vessel sizes on Middle East to North Asia routes, a chartering source said. "Probably there will be more inquiries in the next few days after two long weekends," the source added. Among the outstanding LR1 cargoes, ATC is seeking tonnage for January 7-9 naphtha loading on the Persian Gulf-Japan route, sources said. Another LR1 cargo, belonging to Lotte Titan, is scheduled for January 20 naphtha loading on the Persian Gulf-Pasir Gudang route, they said. Some charterers are optimistic of getting ships below the last done levels in the current scenario because there are not many cargoes around, which can lead to a piling up of tonnage. "So far nothing has been done below the last done levels but the sentiment is very, very weak," said a chartering executive with a global oil and refining company. Market participants said rates could see some downward pressure, and the higher flat rates for 2018 will also nudge the Worldscale numbers lower. Already, there have been a couple of LR2 fixtures below the key psychological mark of w100, on the Persian Gulf-Japan route. The Worldscale organization fixes flat or $/mt rates equivalent to w100 for all possible routes across the globe for every calendar year. These flat rates take into account the bunker prices of the previous October-September and prevailing port charges. The flat rates are mostly higher for 2018, taking into account the gains made in bunker prices in 2017. For a couple of weeks of the new year, market participants have a tendency to typically continue using the Worldscale flats of the previous year as they adjust to the new rates. When pro-rated with the new higher flat rates, the Worldscale rates are lower. In the MR market, it has been a slow start to the week, though ships taken by Chinese companies such as Unipec and PetroChina have been on subjects since late December, said a broker in Singapore.


Trends

Arab Gulf-Japan 55kt


Receive end-of-day price assessments at your desktop with Platts Market Data



Copyright © 2018 S&P Global Platts, a division of S&P Global. All rights reserved.