Product tankers freight rates remain low in 1Q: Scorpio

Product tankers freight rates remain low in 1Q: Scorpio

New York, 14 February (Argus) — Clean tanker freight rates have remained below pre-pandemic levels so far this year as the Covid-19 Omicron variant has continued to weigh on global refined product export demand, Scorpio Tankers said in its fourth quarter earnings report.

"There is no sugarcoating it," chief executive Emanuele A. Lauro said. "The weakness in the product tanker market and prolonged recovery has been frustrating."

So far in the first quarter, the Monaco-based clean tanker owner's long range 2 (LR2) tankers have earned a time charter equivalent (TCE) rate of $13,900/d with 51pc of days booked. Its long range 1 (LR1) tankers have earned $12,750/d with 60pc of days booked; medium range (MR) tankers have earned $13,750/d with 53pc of days booked; and Handymaxes have earned $14,200/d with 53pc of days booked. During the first quarter of 2020 the segments earned roughly $26,800/d, $20,300/d, $21,000/d and $22,600/d, respectively.