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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.

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