Upswing on the product tanker market has continued in April and May with increasing rates above the level of the year’s first quarter, writes tanker operator Concordia Maritime in an update.
Although there are marked fluctuations in spot rates with peaks above USD 60,000 per day, the upturn in general continues within product tanker, writes Swedish product tanker carrier Concordia Maritime in a market update.
The product tanker market has ”strengthened significantly” in April and May with rates at higher levels than in both Q1 this year and the full year 2021, states Concordia Maritime. Overall, 2021 was a bad year for product tanker carriers, which saw significant losses.
However, rates have been increasing for most of 2022, and at the end of May, spot rates for MR vessels within product tanker were at roughly USD 36,000 per day.
Contract rates have soared as well. A three-year time charter deal for an MR tanker vessel is currently at USD 15,000-16,000 per day, states Concordia Maritime.
The average spot rates for suezmax ships are at USD 22,000 per day. April and May have furthermore been characterized by large fluctuations in rates with peaks of USD 60,000 per day for suezmaxes.
The Swedish tanker operator explains that it’s not only the increased demand for oil that is behind the soaring rates but also the war in Ukraine.
The Western sanctions against Russia have led to a decline in Russian oil exports, which furthermore has caused changes in trade patterns on the global oil market. For instance, diesel products are now increasingly sailed to North America and the Middle East, states Concordia Maritime.
