Tanker Owners Fight Back

Thursday, August 16, 2001
Tanker owners, who have been retreating on freight rates for crude cargoes for several weeks, have started to fight back in recent days, especially for prompt loading dates, brokers said on Thursday.

The defiant mood was illustrated by the fixture of a VLCC from the Tankers International pool to Petronas at W57.5 ($0.45), about 40 percent above the prevailing market rate.

Loading in the Mideast Gulf is scheduled for two days' time with discharge in Malacca, brokers said.

"Basically, Petronas left it too late and Tankers International had the only ship capable of making the date," said a London broker. "But any owner who thought they could get that rate for September loading would be very foolish."

Brokers pegged that market close to W41 ($0.39 per barrel).

Tankers International controls a large pool of VLCCs belonging to five of the world's largest tanker operators, allowing it to react quickly to such trading opportunities.

Freight rates for VLCCs collapsed 15 percent overnight last Wednesday as shipowners scrambled to book voyages out of the Mideast Gulf before September 1 when OPEC cuts were expected to hit tanker demand.

Brokers said that the market had stopped falling, however, and even on September loading dates it had bottomed out and would be moving back up next week.

"I had a trader asking for a VLCC to do a Westbound voyage at below W40 ($0.31), but I had to say there's no way," said a broker.

"An owner might do a short trip for rubbish money, but he won't lock himself in for 80 days on rubbish money," he added.

Similar opportunities were available to tanker owners in West Africa, where a million-barrel fixture was concluded for August 24 loading at W100 ($1.32 per barrel), 10 percent above the market.

But it was in the North Sea market that owners were really trying their luck on prompt dates. One owner said he had eight offers of cargo for a ship that was available between August 25 and August 31 and would be holding out for a very firm rate.

For an August 28 loading date, Norway's Ugland managed to get W150 ($1.17) from Esso Petroleum for a voyage from Hound Point to Fawley. Other owners were equally bullish.

"Teekay is saying it has an Aframax (70-80,000 tons) available in the North Sea at W162 ($1.27) for anyone who's interested," said a London broker.

The offer is nearly 50 percent above the market, which stands at around W107 ($0.80 per barrel) for September loading dates. - (Reuters)

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Seacor Takes Delivery of 10,800 HP Crewboat

Seacor Marine is building ever larger and more powerful mono-hull crew/supply boats. The first of these to be delivered is the 202x34-foot Alex F. McCall with some very impressive statistics.

Choosing the Best Financing Proposal

It isn’t always about the rate. In a robust boatbuilding market – like the one we see now – even the most successful, financially stable operators need to borrow.

Production Begins on Sovcomflot’s New MPSV

Arctech Helsinki Shipyard started production of the new icebreaking multipurpose supply vessel   The production of the icebreaking multipurpose supply vessel

Tanker Trends

OW Tanker Taken Over By Newly Created Company

OW Tanker, a unit of bankrupt OW Bunker and owner of its marine fuel supply ships, has been taken over by a newly-created company, the fleet manager told Reuters on Wednesday.

Stena Bulk Joins World Ocean Council

Stena Bulk reports it is the first Swedish shipping company to join the World Ocean Council (WOC), a global organization that converges a diverse range of maritime

US House to Hold Hearing on Oil Export Ban

A House of Representatives panel will hold a hearing on Dec. 11 to explore whether a decades-old law that prohibits the export of crude oil makes sense in an era of domestic energy abundance.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2282 sec (4 req/sec)