Watch the gap: LR2s tipped to catch up to LR1s as rate gulf carries on

A sizable gap has persisted between LR2s and LR1s carrying cargoes from the Middle East to the Far East, but the mismatch is not expected to last for much longer.

With an LR2 sailing from the Middle East to Japan earning time charter equivalent (TCE rates) of $27,876 per day and LR1s on the same route earning $35,733 per day, Howe Robinson said it was $200,000 cheaper to fix one of the larger product tankers.