Shell and Trafigura have reportedly returned to fix product tankers on period charters after the holiday season, but the crude tanker market has remained quiet.

Brokers reported Shell chartered the 108,000-dwt Thunderbolt and Thundercat (both built 2008) from Buana Lintas Lautan — better known as BULL — for 12 months in a profit-sharing deal.

The charters are said to be fixed at a base rate of $14,000 per day, with the shipowner receiving extra income when the Baltic Exchange’s TC1 index exceeds that level.

TradeWinds approached Shell and BULL for comment.

Clarksons Research estimates the one-year rate for an LR2 tanker at $16,750 per day.

Separately, Trafigura took two MR newbuildings from Norden, according to brokers. The pair are due to be delivered from Hyundai Vietnam Shipbuilding in the first quarter.

The 50,000-dwt Nord Valkyrie was fixed at $14,750 per day on a one-year charter, which can be extended by another year at $16,250 per day.

Trafigura chartered the 50,000-dwt Nord Vision for two years at $15,250 per day, with an option to extend the deal by 12 months at $16,750 per day.

VesselsValue data shows the Nord Valkyrie is installed with exhaust gas cleaning system. It is not known whether the Nord Vision has the same equipment.

When contacted, both Trafigura and Norden declined to comment on the fixtures.

Product tankers outperform crude

On the crude side, Unipec reportedly sought to charter the scrubber-fitted, 319,200-dwt Irini N Lemos from Enesel for one year at $30,000 per day. But the deal did not materialise.

The failed fixture came as Saudi Arabia decided to reduce crude production by 1m barrels per day in February and March, surprising many oil and tanker players.

“With Opec+ announcing that the Saudis would reduce their output ... it also made charterers rethink their rate ideas,” broker Braemar ACM said in a note.

While the tanker sector is overall plagued by weak oil consumption, earnings of product tankers have been more resilient than crude tankers.

Clarksons Platou Securities estimated spot VLCC earnings decreased by 24% between 4 and 11 January, suezmaxes by 43.7% and aframaxes by 39.5%.

Meanwhile, LR2 earnings were up 20.6% over the same period, while LR1s were down 19.6% and MRs down 14.7%.

In the product segment, Braemar said there was “some solid enquiry and interest” to start the year on period charters — particularly for LR2s.

“Overall, charterers are willing to take on longer periods again — potentially highlighting a small increase in confidence particularly on the larger [ships],” the broker said.

Tankers

Shell and Trafigura take product tankers on period deals to kick-start 2021