Asian LR2 rate hits 2015 high on flurry of cargoes, tight tonnage

A new high for the year was reached for the tonnage-strapped Asian Long Range 2 shipping market on the key Persian Gulf to Japan voyage today on a surge of demand which saw the rate spike 7.5 points on the day to Worldscale 135 basis 75,000 mt.

“LR2s have been super tight for a while but rates have been rather flat, though at high levels. I think it just needed a spark and then everyone jumping in to fix,” said a charterer.

“There are a lot of cargoes for LR2s, and the North Asian market was active — taking up a lot of tonnage too,” said an LR2 shipowner source.

In fixtures heard, Idemitsu had placed the Silvaplana on subjects for a PG-Japan voyage, loading July 25, at w136.

Unipec was heard to have placed the Gulf Vision on subjects for a PG-Japan voyage, loading July 21, at w132.5, sources said.

West-bound voyages also saw gains, and Mena Energy had placed the Four Sky on subjects for a PG-UKC voyage, loading July 12, at $3.1 million, said a source.

Market participants said charterers were fixing LR2 tankers further ahead, to as far as end-July dates, and that the market was poised to firm further with more cargoes lined up.

“The LR2 market has gone up because it is tight. And it looks like it can go higher. I still see at least five uncovered cargoes for long voyages in the market,” said a Singapore-based broker.
Source: Platts