Brokers See End To Tanker Slide

Friday, November 19, 1999
A continued slide in Middle East tanker rates to near year lows was expected to end this week by the emergence of Saudi stems and a resumption of Iraqi exports, shipping brokers said. VLCC tanker operators' earnings hit their lowest levels yet this year as a result of a combination of heavily depressed Middle East tanker rates and fixtures plus high bunker prices, brokers said. With only eight VLCCs fixed from the Middle East last week, rates to Japan fell to W45 ($4.80 per ton) from around W50 ($5.30) the week before and to about W42.5 ($2.75) for Singapore. Rates to the U.S. Gulf fared no better, dropping a two and a half points to around W42.5 ($7.00 per ton). At these rates a round western voyage would bring returns of $13,500 a day for a modern motor vessel and about $4,000 a day for an older turbine ship - well below operating costs. As a result, VLCC scrapping appeared to be finally taking off with seven units reported sold for demolition in the last ten days. Brokers have long said the fleet would need to be cut before rates rose significantly. But with 80-plus vessels available in the Middle East over the next few weeks, rates were not expected to do a great deal more than stop declining in the immediate future. Meanwhile, last week's hot spot - the North Sea Aframax market - cooled down. After attaining highs of W125 ($4.60 per ton) rates for 80,000-ton vessels on U.K./Continent fixtures fell back to W110 ($4.00) by the end of the week. But the continuing absence of a number of Alandia's tankers due to financing problems and arrests should lead to a further strengthening in rates before the end of the month, brokers said. - (Reuters)

Maritime Today


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

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Egypt to receive first LNG shipment from Rosneft in May

Egypt will receive the first of five agreed shipments of liquefied natural gas (LNG) from Russia's Rosneft this month, an official at the state gas board EGAS told Reuters on Thursday.

NASSCO Delivers First ECO Class Tanker for SEA-Vista

On Thursday, April 28, 2016, General Dynamics NASSCO delivered the first ship in a series of three ECO Class tankers currently under construction for SEA-Vista LLC.

Crowley to Christen 3rd LNG-ready Product Tanker

Crowley Maritime Corp. announced it will hold a christening ceremony Thursday, May 5 in New Orleans for the newly built Louisiana, the company’s third of four new Jones Act product tankers.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Salvage 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: 0.0662 sec (15 req/sec)