ATHENS: Singapore-based ST Shipping, part of commodity trader Glencore, has reportedly fixed five dirty petroleum products (DPP) tankers on short-term period charters, thought to be for floating storage. All of the charters commence on June 15, brokers told Splash.
In May, the trader chartered six aframax tankers on one- to three-month period charters at rates of between $25,000-28,000 per day. The vessels were employed for what is thought to be floating storage for fuel oil on the back of favourable market conditions at that time. The same pattern is being seen again with this new round of fixtures. Last week saw trading records being smashed, with $750m worth of physical fuel oil cargoes traded during the first week of June, more than 60% of Singapore’s average monthly sales of the fuel.
The price of 380 CST fuel oil strengthened by $2.76/tonne over the course of last week, closing at $394.35/tonne. Traders expect the price to rise further over the summer, so are stockpiling the fuel now to make a return later. At the close of business on Friday, Singapore Fuel Oil 380 CST futures had 8,315 open interests, an increase of 188 on the previous day. ST Shipping has reportedly chartered the panamax DPP tanker Ocean Schooner (73,100 dwt, built 2000), owned by Greece’s Oceangold Tankers, for $2,300 per day for a two-month timecharter.
