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Gasoline Tanker Rates Surge as Flow of Europe-U.S. Cargo Climbs

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May 8 (Bloomberg) -- Rates for tankers to ship European gasoline to the U.S. surged as the amount of cargoes booked for the trade jumped.

Costs measured in industry standard Worldscale terms gained 14 percent to 167.92 points for voyages to New York from Rotterdam, according to data from the Baltic Exchange in London. The vessels’ earnings increased 33 percent to $19,410 a day, according to the bourse’s calculations.

“Tight supply of ships for prompt loading on the continent and an influx of fresh cargo inquiry proved a potent combination,” Thomas Teigland, a tanker broker at Fearnleys A/S in Oslo specializing in gasoline shipments, said by e-mail today. “As the cargoes kept coming, owners’ confidence improved.”

Oil traders boosted the number of tankers they booked to ship European gasoline to the U.S. in the past week, according to a survey of shipbrokers. They already hired or plan to hire 33 Medium Range tankers on the Rotterdam-to-New York trade route for loading in the next two weeks, according to a survey of four shipbrokers and one trader yesterday and today. That compares with 21 charters in the corresponding survey on April 30.

The increase in rates is the biggest since Jan. 4. The Worldscale system reflects dollars-a-ton freight costs on thousands of different trade routes. Those flat rates change at the start of each year.

To contact the reporter on this story: Alaric Nightingale in London at anightingal1@bloomberg.net

To contact the editor responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net

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