LR2s in two-month high

Clean long-range-2 (LR2) products tankers are experiencing a firm spot market as eastern routes have seen rates rise to a two-month high.

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The Baltic Exchange’s assessment of the TC1 route between the Middle East Gulf and Japan added another World Scale (WS) 0.5 today to reach WS99.1, the highest level since 19 May.

That amounts to a time-charter equivalent of more than $13,300 per day, which was last accomplished around the same time in May, according to data from the London-based exchange.

US tanker broker McQuilling Partners said today that a tight tonnage list is pushing firm sentiment in the LR2 market.

“Owners are trying their best to test the WS 100 levels for TC1, which could probably be achieved,” said the brokerage in its daily market commentary.

LR1s are also benefiting from the activity, with rumors of a fixture on subjects at WS 105 on a route from the Middle East to Asia, the brokerage said.

The Baltic Exchange reported the assessments on the LR1 route known as the TC5 rose to WS 105.77, an increase of WS 2.5.