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Petroleum product tanker freight in Asia continued to firm this week on demand and a lack of vessels while prices generally fell in Europe, reflecting a slew of available ships, shipping brokers said.
They said bookings to Australia from the Singapore area have boosted rates to new highs.
Brokers said Medium Range (MR) 35,000 tonne tankers from Singapore to Japan were trading above W300. Rates in the Gulf have also firmed on account of the strong activity in Singapore and a lack of ballasting back to the Gulf.
Gulf to UK-Continent rates are averaging $1.4 million, and 35,000 tonne cargoes from the Gulf to East Africa are paying W320.
Brokers also said the Long Range (LR) market was firm and would continue strongly over the next month.
A typical (LR-2), 75,000 tonne shipment, from the Gulf is worth about W207.50 and is expected to firm at least 5-10 points over the coming weeks. LR1s, 55,000 tonnes, are paying W235-W240, brokers said.
In Europe, strong gasoline demand to the United States failed to stem the fall in freight. Brokers said a swathe of ships ballasting to Europe to seek employment was behind the fall.
Typical 37,000 tonne cargoes of transatlantic gasoline are now fetching W240, down at least W20 points some 10 days ago.
That fall was despite some 900,000 tonnes of gasoline booked to move from Europe to the United States in July so far.
For intra-European trade, prices held steady at W 235 basis 22,000 tonne as tonnage availability tightened up to the middle of the month, brokers said.
A lack of activity in the Mediterranean has caused prices to dip, however.
Owners with approved tonnage are able to achieve W230 for gas oil from the Black Sea while 'cross-Mediterranean' naphtha liftings were generally being fixed at levels of W245 basis 30,000 tonne.
Across the Atlantic, freight remains unchanged with W230/235 the going rate for 38,000 tonne upcoast trade.

Copyright Reuters, 2004

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