Lloyd’s List: Atlantic Basin Refineries Make a Surprise Comeback

“Since Sunoco said it was discussing forming a joint venture to keep its Philadelphia refinery open two weeks ago, other companies have come out of the woodwork with their own plans to keep struggling US and European refineries in business. While these rescue plans are not particularly good for a refining industry hampered by overcapacity, the development is positive for suezmax crude tankers shipping cargoes from West Africa to the US Atlantic coast. . . . . ‘Everyone loves a bargain,’ said US-based shipbroker Poten & Partners in a report. Unfortunately for shipowners, so do charterers, who can now charter a suezmax on the spot market to ship West African crude to the US Atlantic coast at around $13,000 per day, compared with about $35,000 per day in the middle of March. Any extra cargoes and potential pick-up in rates and earnings will, therefore, be a welcome boost for owners plying that trade.”