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 Today

The Maritime Industry's original and most viewed E-News Service

Maritime Reporter November 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


BIMCO Signs New LNG And Shipbuilding Supervision Contracts

The twice yearly meeting of BIMCO’s Documentary Committee took place in Hamburg on 19 November. In his first meeting as Chairperson of the Committee, Belgium’s

Damen Marine Components Opens Jiangyin Plant

Damen Marine Components (DMC) is proud to announce the opening of its brand new facility in Jiangyin, China.Those present at the opening ceremony included CEO

Henriksen Unveils Strongest SOLAS Boat Lifting Hook

H Henriksen of Norway has received SOLAS certification for a new off-load single-point boat lifting hook capable of holding up to 22.5-tonnes. The quick release

Tanker Trends

Idling Fleet Continues to Surge

Owners are rapidly laying up containerships as the market slows. The size of the idle fleet will get bigger while rates and profits slide, says Drewry Shipping Consultants Limited.

Egypt to Complete East Port Said Side Channel in 2016

Egypt plans to complete a side channel in East Port Said, near the Suez Canal, that would speed up shipping and allow ships direct entry into the port by the end of June 2016,

Concordia Maritime Charters MR Tanker

Concordia Maritime has signed a contract for the charter of an IMO2/3 class MR tanker, the company announced today. The vessel will be chartered jointly with Stena Weco,

Maritime Careers / Shipboard Positions Maritime Standards Navigation Offshore Oil Salvage Ship Electronics Ship Repair Ship Simulators 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: 0.0732 sec (14 req/sec)