Scorpio Locks In Five Years of LR2 Cover at $29,000 a Day
Scorpio Tankers has agreed to time charter-out two of its LR2 product tankers, STI Rose and STI Alexis (both 2015-built), on five-year deals at $29,000 per vessel per day, with the charters expected to start in the first quarter of 2026. The move is being read as a clean “rate signal” for forward LR2 employment, since it puts a long-dated number on the table rather than leaving these ships exposed to spot swings.
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The term-market message inside $29,000/day
Scorpio Tankers disclosed five-year time charter agreements for two 2015-built LR2s, STI Rose and STI Alexis, at $29,000 per vessel per day, with expected start in the first quarter of 2026. The counterparty was not disclosed in the company announcement, but the size and duration put a clear marker on forward LR2 pricing.
Deal snapshot, translated into scale
Headline rate
$29,000 per day, per vessel
Two LR2s covered on identical five-year terms.
Term
5 years (expected start Q1 2026)
A long forward commitment, not a short-cycle employment bridge.
Back-of-envelope gross revenue
$0 (two vessels)
Assumes 365 days and 100% availability. Use the tool below to adjust assumptions.
How owners and charterers read a five-year number
Term fixtures like this compress a lot of information into one line. They show where a charterer is willing to lock in multi-year coverage and where an owner is willing to trade some upside for visibility. In the LR2 segment, a published five-year rate often becomes a reference point for period discussions even among parties not involved in the deal.
- For owners, it converts part of the fleet from spot exposure into predictable contracted earnings for multiple years.
- For charterers, it is a way to secure modern tonnage and reduce exposure to near-term market swings.
- For the broader market, it adds a clear datapoint for the forward curve that is usually harder to observe than spot rates.
Term vs. spot lens (interactive)
This tool compares the disclosed time-charter economics to a hypothetical spot average over the same period. It is gross revenue only and does not model operating expenses, drydock, financing, commissions, or taxes.
Number of vessels
2
Time-charter rate (USD per day)
$29,000
Spot average assumption (USD per day)
$29,000
Term length (years)
5
Availability assumption (%)
95%
Time-charter gross: $0
Spot gross (assumed): $0
Difference: $0
Note: availability applies equally to both scenarios. This is a comparison lens, not a forecast.
Scorpio Tankers’ disclosure of two five-year LR2 time charters at $29,000 per day, starting in the first quarter of 2026, gives the product tanker market a rare, explicit term datapoint at a moment when forward pricing is often discussed more than it is documented.
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