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

Shipbuilding

ERMA Bullish on Ballast Water Treatment

After having delivered several BWTS systems in Kita Nihon shipyard in Japan, one more ERMA FIRST BWTS was successfully installed onboard the Bulk Carrier M/V SCARABÉ(DWT: 60,

USS Freedom (LCS 1) Completes Rough Water Trials

The littoral combat ship USS Freedom (LCS 1) completed Seakeeping and Structural Loads Trials, commonly referred to as Rough Water Trials (RWT) in late March the Navy reported May 21.

Conrad Announces Management Team Changes

Conrad Industries, Inc. announced the appointment of Scott J. Theriot as Executive Vice President and Chief Operating Officer.   Johnny Conrad, President and Chief Executive Officer,

Tanker Trends

HSH Bank to Split Off Bad Shipping Loans

German lender HSH Nordbank could split off a "bad bank" for non-performing shipping loans as part of a plan to create a sustainable business model, according to a person familiar with the matter.

Gail to Sell LNG Supplies from US to Shell?

GAIL (India) Ltd has signed a preliminary deal with Royal Dutch Shell for the potential sale of liquefied natural gas (LNG) supply sourced from its portfolio, made up of US production,

How Do You Lose 100 Million Barrels of Oil?

Oil-market watchers are struggling to reconcile the large estimated oversupply in the market with the much smaller buildup of reported inventories and narrowing contango in futures prices.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Salvage 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: 0.0862 sec (12 req/sec)