Clean LR2 Freight at Near 4-Year High on Red Sea Supply Squeeze: Platts

Clean tanker freight rates from Europe-bound voyages have hit their highest level in nearly four years amid longer voyages due to shippers avoiding the Red Sea, Platts said.

• This has increased turnaround for ships and reduced the supply of freight.
• "There are no LR1s or LR2s available in prompt positions, and charterers would like to cover their requirements before the Lunar New Year, and this is pushing the freight higher," a broker told Platts.
• Rising freight rates are likely to trickly down into delivered costs, driving up the price of jet fuel and diesel into Europe.
• LR2 Rates have risen by over 60% in the last five days on the Persian Gulf-UKC routes basis Suez Canal route, Platts added.
• The potential influx of dirty tankers into the clean market could prevent a further spike in LR2 rates, another broker in North Asia told Platts.