Mideast Gulf clean LR2 rates surge

Eastbound LR2 rates from the Mideast Gulf jumped on Friday, as vessel supply continued to decline.

LR2 rates from the Mideast Gulf to Japan rose by WS17.5 to WS137.5, as offers from shipowners increased, owing to a slim number LR2 vessels in the region available to load before 12 April. Chevron booked the Tavistock Square at WS137.5 for a75,000t shipment from the Mideast Gulf to east Asia, loading from 11 April.

On the LR1 routes, rates from the Mideast Gulf to Japan and to Singapore moved up by WS2.5 and WS5, respectively, to WS130 and WS142.5. Japanese trading company Marubeni booked the SCF Prudencia at WS129 for a 55,000t shipment from the Mideast Gulf to east Asia, loading from 14 April. Glencore's subsidiary ST Shipping booked the Jag Amisha at WS142.5 for a 55,000t shipment from Ras Laffan to Singapore, loading from 10 April.

On the MR market, rates from the Mideast Gulf to Japan and to Singapore also increased by WS2.5 to WS137.5 and to WS177.5, respectively, following the LR market's upward momentum. Shipowners took direction from ST Shipping's replacement fixture of the Evions at WS137.5, from Vadinar to Japan, loading from 29 March. Market participants also indicated trade discussions for the route would take place at about WS137.5.

In the Asia Pacific region, MR rates from southeast Asia to east coast Australia remained at WS152.5 following unchanged fundamentals. But, freight rates in the region could move higher if rates in the Middle East continue to increase and shipowners decide to ballast their vessels towards that region.

In north Asia, the lumpsum freight rates from the South Korea to Singapore and to the US west coast were flat at $390,000 and $960,000, following a lack of chartering activity.