Prospects for tankers hauling refined oil products such as gasoline are improving “rapidly” and charter rates for the vessels may increase, according to Morgan Stanley.
Higher refinery utilization rates and stronger exports of refined products from the U.S. Gulf Coast bolstered demand for tankers, Morgan Stanley analysts led by Fotis Giannakoulis in New York said in a report sent by e-mail today.
Demand for product cargoes may advance, sending rates “significantly higher” for single voyages, as new refineries replace lost capacity and more plants carry out maintenance, Morgan Stanley said. Charterers aim to hire vessels before a possible rebound in freight costs as gauged by so-called ton- mile demand, the report showed.
“During the last two months, the number of period charters has doubled compared to the previous seven months,” Morgan Stanley said in the report. Ton-mile demand is calculated by multiplying cargo size and distance traveled.
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