10OCT2019 - NEWS - Americas IMO 2020 clean tanker boom off to a delayed start

Clean tanker market participants expect to see rates in the Americas begin a long-awaited rally in the second half of October, rather than at the onset of the fourth quarter, they said.

Such expectations are based upon the projected return of US Gulf Coast refining capacity around October 15 and exports of ULSD and marine gasoil increasing ton-mile demand ahead of the implementation of the global bunker fuel sulfur reduction to 0.5% on January 1 from 3.5%.

Trades in the paper market for the Medium Range 38,000 mt USGC-trans-Atlantic run show the Americas market rising around 40% from October to November and around 15% from November to December, with the October contract having traded at Worldscale 96.24 Monday, compared with w94 a week earlier. The November contract traded at w135.58, and the December contract at w157, according to a shipbroker.