Asian Tanker Rates Set for 4th Week of Gains

Asian Oil Product Tanker Rates Set for Fourth Week of Gains
By Katherine Espina
May 11 (Bloomberg)

The cost of hiring tankers to ship gasoline, diesel and other so-called clean petroleum products on Asian routes is set for a fourth weekly gain as demand for ships in the Atlantic draws vessels away from the Far East.

This week, four fixtures were made to ship a total of 148,000 tons of oil products to the U.S. Atlantic Coast from Europe, according to Bloomberg data. Exports have increased this year as U.S. gasoline demand outstripped supply. Gasoline supplies in the week ended May 4 were 8 percent below the five- year average, the U.S. Energy Department said yesterday.

Rates to transport a 30,000 metric ton cargo on the benchmark route from Singapore to Japan rose a fifth day, gaining 3.3 percent to Worldscale 235.83 yesterday, the London-based Baltic Exchange said. Shipping a gallon of fuel on the route costs 6 cents, according to calculations based on data compiled by Bloomberg.

Itochu Corp., Japan's fourth-largest trading company, hired an oil-products tanker to ship 30,000 tons of fuel to Korea and Japan from Mumbai on May 21, Singapore-based Trade Sea Shipbroking Pte Ltd. sad in its daily market report today.

The Singapore broker didn't say how much was paid to hire the Da Qing 451. The double-hull vessel was built by Dalian Shipyard Co. Ltd. in 2001.

Itochu also hired a tanker to carry 30,000 tons of oil products from South Korea to Subic Bay in the northern Philippines at end of the month, a report by shipbroker Odin Marine Inc.(Singapore) Pte said.

The double-hulled Pacific Serenity, built in 2003, is currently sailing to the Port of Hazira in India from off the shores of Singapore.

Rates to ship 55,000 tons of oil products to Japan from the Middle East rose 2.2 percent to Worldscale 188.46, the fifth day in a row that it's gained, according to the Baltic Exchange.

The cost of shipping 75,000 tons of clean petroleum products to Japan from the Middle East climbed 2 percent to Worldscale 137.92.

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