LR … 2 Sides to the Story (December 19th, 2014)
Does it make sense to switch from clean to dirty?
While comparing the current TCE earnings for an LR2 moving naphtha on an Arabian Gulf - Far East voyage with the earnings for an Aframax trading crude from the Arabian Gulf to South East Asia, you will notice that there is a significant differential: $33,400/day for a ‘dirty’ voyage versus $24,500/day for a ‘clean’ trip. Based on this discrepancy, one would expect every owner of LR2s to switch their vessels into the crude trade. However, this does not happen to the extend you expect. Why is that?