LR2 market compared to Brexit negotiations

LR2 market compared to Brexit negotiations

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.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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