Jaeyoung McGarry's questions to Torm PLC (TRMD) leadership • Q1 2025
Question
Jaeyoung McGarry of Jefferies asked about the market impact of new LR2 vessel deliveries, questioning how noticeable the new supply is and whether these ships are remaining in the clean product trade or switching to dirty trades.
Answer
CEO Jacob Meldgaard explained that despite numerous LR2 newbuild deliveries, the number of LR2s trading clean has actually decreased, as more than 40 vessels have switched to the dirty (Aframax) trade. He emphasized that the LR2 and Aframax markets are integrated, creating a 'swing factor' that helps balance the market as new vessels enter.