Tanker Freights’ Declining Rate to Continue

Monday, April 03, 2006
Global tanker freight rates may be depressed for several more years as a stream of new vessels hit the market and shipowners refrain from scrapping older ships. However, a recovery is likely toward the end of the decade as more single-hulled tankers are taken off the market to meet regulations for safer ships. Tanker rates jumped to record highs in 2004 as a surge in oil trading and demand strained available fleet supply, but they have since retreated despite the still-booming markets for commodities such as oil, copper and sugar. The rate for a supertanker on the benchmark Middle East-Japan Very Large Crude Carrier (VLCC) reached a peak of about WorldScale 344 in November 2004, but has since fallen back to around W65, data from the Baltic Exchange showed. Part of the recent decline is due to the low number of ships scrapped over the past year, when shipowners saw more benefit in continuing to lease out tankers than selling them for scrap. In 2005, ships with the equivalent capacity of 4.5 million deadweight tonnes (dwt) were sold for decommissioning, but the world’s fleet grew by about 7 percent as around 30 million dwt new tankers were built, data from the International Association of Independent Tanker Owners (INTERTANKO) show. A rush of new tankers is on the way: in January 2006, the number of tankers set to be built was around 26.5 percent of the current global fleet size of 4,186 tankers. But more tankers are set to be scrapped as rates hover around two-and-half year lows. According to the Daily Times, the overall health of the tanker market will improve on sustained demand for oil and the need for single-hulled fleet renewal due to international regulations. Global oil demand growth is forecast to grow 1.49 million barrels per day (bpd) in 2006, compared to 1.02 million bpd in 2005. (Source: Daily Times)
Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Chevron Announces Quarterly Dividend

The Board of Directors of Chevron Corporation today declared a quarterly dividend of one dollar and seven cents ($1.07) per share, payable December 10, 2014,

Easing US Oil Export Ban Unlikey to Raise Gasoline Prices

A government study on Thursday essentially supported the notion that easing the decades-old restriction on exporting U.S. crude was more likely to lower than raise

Exmar Optimistic About Gas Carrier Market into 2015

Belgian gas shipping group Exmar said on Thursday that the market for its very large and midsize gas carriers was at historically high levels in the third quarter

Environmental

GAC Starts Green Hull Cleaning Operations in Oman

Oman’s Ministry of Environment and Climate Affairs has granted GAC EnvironHull permission to conduct underwater hull cleaning operations using the brush-and-diver-free

Fukushima Experimental Offshore Floating Wind Farm Project Update

A consortium comprised of Marubeni (project integrator), the University of Tokyo (technical advisor), Mitsubishi, Mitsubishi Heavy Industries, Japan Marine United,

Wärtsilä Propulsion Equipment for 2 Fishing Vessels

Two new 78 metre purser/trawler fishing vessels being designed and built at Karstensen Shipyard in Denmark will feature Wärtsilä's main propulsion and control equipment.

 
 
Maritime Security Maritime Standards Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
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: 0.1073 sec (9 req/sec)