Medium range product tankers faced with increasing complexities in attempt to increase earnings

Medium range tankers have been in a dismal situation since the second half of the previous year, with the situation not much altered during most of this year as well, but things could pick up in the future, albeit only for those ship owners who keep their eyes and ears open. According to a report from London-based shipbroker Gibson, the second half of last year was an absolute disaster for MR tankers operating in the Atlantic Basin. “Timecharter equivalent earnings on a round voyage basis for the benchmark gasoline trade UKC – USAC (TC2, 37,000 tons) averaged well below fixed operating costs at $2,500/day between July and November 2009. The situation this autumn has not been much different, despite initial strong hopes for a busy hurricane season. Since early August TC2 daily returns have remained below the very basic “break-even” mark in
terms of fixed operating expenses, with the latest TCEs at just $500/day”.
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Source: Hellenic Shipping News