Record number of LR2s trading dirty, yet product tanker rates still tepid
- Vortexa data shows that an all-time high number of coated LR2 product tankers have switched to dirty trades, driven by Greek owners re-entering the Russian crude export market
- Despite support from geopolitical events, product tanker indexes are down 45%-60% year on year. They are also down double digits from year-to-date highs
- Investors have forsaken product tanker stocks, which are trading at large discounts to NAV and continue to heavily underperform the broader stock market
Geopolitical events are causing ongoing distortions in product tanker trades — the historic shift of LR2s from clean to dirty trades being a case in point. But this hasn’t translated into strong spot rates, disappointing stock investors
