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

Shipbuilding

Otto Marine's Financial Health on the Mend

Michael See Kian Heng, Group Executive Director of Singapore-based offshore vessel owners & shipbuilders Otto Marine, says that his company reported revenue of US$512.

Ultra-deepwater Drillship 'Maersk Valiant' Delivered

Maersk Drilling advises that its second new drillship, 'Maersk Valiant', has been delivered from the Samsung Heavy Industries (SHI) shipyard in Geoje-Si, South-Korea.

Latest Shipbuilding Contracts Include VLCC Order for Philippine Yard

In the latest Clarkson Hellas S&P Weekly Bulletin newbuilding orders are reported in Far East shipyards for a range of vessels as follows: Bulk carriers Clarkson

Tanker Trends

Latest Shipbuilding Contracts Include VLCC Order for Philippine Yard

In the latest Clarkson Hellas S&P Weekly Bulletin newbuilding orders are reported in Far East shipyards for a range of vessels as follows: Bulk carriers Clarkson

North Sea: Potential VLCC Moves to South Korea

North Sea Forties crude differentials were unchanged on Wednesday in very quiet pre-Easter trade, with dealers still watching two potential VLCC shipments to Asia

All Items Approved at Stolt-Nielsen Meeting

Stolt-Nielsen Limited announced that all agenda items were approved and all nominated directors were elected at its Annual General Meeting of shareholders held yesterday in Bermuda.

 
 
Maritime Security Naval Architecture Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1022 sec (10 req/sec)