Panamax market switches to LR1s on higher dirty tanker rates.

Clean tanker owners have moved multiple Long Range 1 ships over to the Panamax market in recent weeks in response to the highest rates since February in the dirty tanker market, taking advantage of high returns, and prompting a tightening of LR1 availability on the US Gulf Coast.

Last week the BW Tagus, a ship typically working in the clean LR1 spot market, was placed on subjects by Shell for a USGC-Singapore run at lump sum $3.3 million, lifting a cargo of dirty condensate October 29 and sailing around the Cape of Good Hope. Later, market participants...