The rates for hiring medium to long-range tankers to ship diesel and other oil products on Asian routes, which rose last week, may extend gains as fewer vessels are available for charter.
The cost of shipping 75,000 tonnes of products to Japan from the Persian Gulf, which surged 4.6 per cent last week, rose 0.4 per cent on Monday to Worldscale 146.67, according to the London-based Baltic Exchange.
The shipping rate for a 55,000-tonne cargo to Japan from the Middle East, which increased 2.3 per cent last week, added 0.7per cent to Worldscale 200.38 on Monday. That translates to US$33.92 a tonne, according to Bloomberg data.
'The Eastern hemisphere now commands a considerable premium over its Western counterpart,' said London-based E.A. Gibson Shipbrokers Ltd. Most medium-range tankers are booked for August and it's possible rates will rise quickly, the shipbroker said in its weekly report.
Four medium-range tankers are scheduled to arrive this week in Singapore, according to Bloomberg data. A medium-range tanker can carry 25,000 to 44,999 tonnes of oil products. A long-range 1 tanker, also known as LR1, can carry 50,000 to 80,000 tonnes of oil products. Lower inventories of gasoline and naphtha in Japan, Asia's second-largest oil consumer, may lead to increased purchases and push rates higher. Gasoline inventories in Japan fell 1.6 per cent to 1.86 million kiloliters (15.8 million barrels), the Petroleum Association of Japan said on July25.
Naphtha inventories dropped 2.9 per cent to 1.69 million kiloliters, the group said. Naphtha, distilled from crude oil, is a raw material for chemicals, plastics and gasoline.
'The Far East market remains tight, particularly in North Asia, with the front-haul market strengthening,' E.A. Gibson said. 'Transpacific voyages are currently fixing at US$1.45 million to US$1.5 million and enquiry levels have been constant.'
The rate for moving 30,000 tonnes of oil products to Japan from Singapore rose 0.52 per cent last week, the fifth week in a row that it has increased, according to the Baltic Exchange.
The rate of shipping 80,000 tonnes of crude oil on so-called aframax tankers to Singapore from Kuwait gained 2.5 per cent during in the past week, the first increase in five weeks. It added one per cent to Worldscale 135.19 on Monday, according to the Baltic Exchange.
The cost of shipping 75,000 tonnes of products to Japan from the Persian Gulf, which surged 4.6 per cent last week, rose 0.4 per cent on Monday to Worldscale 146.67, according to the London-based Baltic Exchange.
The shipping rate for a 55,000-tonne cargo to Japan from the Middle East, which increased 2.3 per cent last week, added 0.7per cent to Worldscale 200.38 on Monday. That translates to US$33.92 a tonne, according to Bloomberg data.
'The Eastern hemisphere now commands a considerable premium over its Western counterpart,' said London-based E.A. Gibson Shipbrokers Ltd. Most medium-range tankers are booked for August and it's possible rates will rise quickly, the shipbroker said in its weekly report.
Four medium-range tankers are scheduled to arrive this week in Singapore, according to Bloomberg data. A medium-range tanker can carry 25,000 to 44,999 tonnes of oil products. A long-range 1 tanker, also known as LR1, can carry 50,000 to 80,000 tonnes of oil products. Lower inventories of gasoline and naphtha in Japan, Asia's second-largest oil consumer, may lead to increased purchases and push rates higher. Gasoline inventories in Japan fell 1.6 per cent to 1.86 million kiloliters (15.8 million barrels), the Petroleum Association of Japan said on July25.
Naphtha inventories dropped 2.9 per cent to 1.69 million kiloliters, the group said. Naphtha, distilled from crude oil, is a raw material for chemicals, plastics and gasoline.
'The Far East market remains tight, particularly in North Asia, with the front-haul market strengthening,' E.A. Gibson said. 'Transpacific voyages are currently fixing at US$1.45 million to US$1.5 million and enquiry levels have been constant.'
The rate for moving 30,000 tonnes of oil products to Japan from Singapore rose 0.52 per cent last week, the fifth week in a row that it has increased, according to the Baltic Exchange.
The rate of shipping 80,000 tonnes of crude oil on so-called aframax tankers to Singapore from Kuwait gained 2.5 per cent during in the past week, the first increase in five weeks. It added one per cent to Worldscale 135.19 on Monday, according to the Baltic Exchange.