Asia/Pacific News
Singapore's ST Shipping, Mercuria Charter Aframax Tankers, Boosts Time Charter Rates
Shipping sources last week said that Singapore-based ST Shipping, Glencore's chartering arm, along with fellow mega-trader Mercuria have chartered six Aframax tankers in Asia, potentially for fuel oil storage in the next few months, Reuters reports.
The activity was said to have given a boost to time charter rates, and the sources view it as a sign the market could be firmer in June.
The 80,000-100,000 tonne capacity vessels were being fixed last week, and pushed up daily hire rates to $28,000, an increase of as much as $5,000 over the previous week, according to the report.
A Singapore-based shipbroker told Reuters that shipowners are likely to try to increase rates in view of the demand.
"Owners were okay to let out their ships, but now there's more resistance since the market is firming up," they said.
Reuters noted that several other market indicators also raised expectations of increased physical trading during June and greater prompt demand for additional storage.
The news is somewhat of a turnaround from February, when demand for floating oil storage dropped following an uptick in oil prices, leading to a decline in very large crude carrier (VLCC) rates.
