The current trading environment for LR2 tankers has been compared to the ongoing tricky Brexit negotiations between the UK and the EU.
In its latest weekly tanker report, brokers Braemar ACM stated: “The LR2 market is somewhat reminiscent of the EU/UK situation currently ongoing, whereby in this instance, owners are playing the role of the EU – enjoying the fruits of the current situation with strong spot rates and having little interest in changing their stance to the TC market. Whilst, charterers sadly, are in a catch 22 whereby they are wanting to get in on the action but finding it difficult, with few owners offering their vessels out currently.”
As a result of this impasse, Braemar ACM reported there has been little activity with just one LR2 time charter concluded last week.
“With sentiment remaining firm on the spot market, it’s hard to see the situation changing over the course of the next seven days,” the brokers predicted.