Transatlantic clean rates at near 3-month high on firm trade

Clean tanker rates for refined petroleum products on top export routes were mixed on Wednesday with firmer trade pushing the transatlantic market to its highest in nearly three months.
Rates for medium-range (MR) tankers for 37,000 tonne cargoes from Rotterdam to New York were at W167.92, or $19,410 a day when translated into average earnings and at their highest since mid February.
That compared with W146.67 or $14,543 a day on Tuesday and W145.23 or $14,421 a day last Wednesday.
Bookings have been bolstered in recent days by shipments to Argentina due to a shortage of refined products caused by a fire at the country's largest refinery.
"What was perhaps expected as a quiet, short week completely backfired and took the market by surprise ... The upwards momentum is irrefutable and charterers find it hard to hold back at the moment," broker Fearnleys said on Wednesday. "The short-term outlook is firm on both sides of the Atlantic."
Earlier this year transatlantic earnings jumped to their highest in a year helped by gasoline arbitrage trading and firmer booking activity before a rally ran out of steam.
In April last year, rates reached their highest since 2008 on a jump in U.S. gasoline demand. Since then, average earnings have remained volatile.
Long Range 1 tankers, carrying 55,000 tonne loads from the Middle East Gulf (MEG) to Japan, were at W103.83 or $7,698 a day.
That compared with W107.42 or $9,139 a day on Tuesday and W109.25 or $10,036 a day last Wednesday.
Late last year the volume of LR1 fixtures jumped to their highest in years, helped by healthy naphtha and jet fuel bookings to Asia, sending earnings to their highest since early October 2009.
Larger Long Range 2 or LR2, 75,000 tonne shipments on the Middle East Gulf to Japan route were at W88.68 or $10,159 a day. That compared with W89.18 or $10,540 a day on Tuesday and W91.06 or $11,670 a day last Wednesday.
"Not many changes in the LR2 rates East over the last 2 weeks, as demand for and supply of vessels into the MEG area have been well balanced," Fearnleys said.
Source: Reuters