Meldgaard: LR ship upturn strengthens faith in tanker

The rate increase in the LR1 tanker segment is surprisingly big and bodes well for the tanker market, Torm CEO Jacob Meldgaard tells ShippingWatch.

Photo: Thomas Tolstrup

Even though the MR ships make up the biggest fleet in Torm's tanker segment, the carrier's CEO Jacob Meldgaard is pleased that the LR1 rates have finally surpassed the MR rates by a significant margin.

Torm operates both LR1 and LR2, which are also referred to as smaller oil tankers, as they are able to compete with the VLCC's for crude oil cargoes, though the LR1 and  LR2's are smaller and able to use the Panama Canal. But this is not why Jacob Meldgaard is pleased with the developments. Rather, he is pleased because this could represent a breakthrough for the tanker market as a whole, where the LR vessels could pull up segments such as MR, the Torm CEO tells ShippingWatch.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

One alternative fuel may be particularly dangerous

In a new study – which Maersk, Shell, Euronav and MSC Ship Management, among others, are behind – the new alternative fuels are ranked based on how dangerous they are. The industry has to be careful with one of them, in particular.

Further reading

Related articles

Latest news

See all jobs