VLCC Rates Hit Highs

Tuesday, November 21, 2000
Middle East to Asia bound very large crude carrier (VLCC) rates have hit to a new record high beyond the psychological barrier of W200, brokers said on Tuesday. Indonesian oil major Pertamina paid W205 to fix the C Navigator for a 245,000 ton cargo going East at the end of November, but that peak was above the current market, brokers said.

"Remember this is a small cargo, so the rate is higher than the usual VLCC rate," said one Oslo-based tanker broker.

"The ship's next cargo will be 265,000 ton, and for that it has fixed at W188. The rate for 270,000 tonrs from the AG to South Korea is still in the W175-180 region." This equates to $2.4 per barrel.

The W205 rate is the biggest for a VLCC going East since the early seventies, but changes to the flat rates and to the bunker prices since then mean the two cannot be easily compared.

Further rate increases will largely depend on how many cargoes remain to be fixed. Brokers say there still appears to be scope for further rate gains. Geneva-based broker Marinav puts the November tally of VLCC and ULCC fixtures at 128 for a cargo total of 34.5 million tons. December stands at 80 fixtures so far, compared to a monthly average for the year of 113 fixtures and a monthly high of 129.

"We need 20 more fixtures to meet the low, 33 for the average and 49 to equal the high," says Marinav's Riaz Khan. "Which will it be?" he adds, "By our count 32 more fixtures is what we expect, for a total of 112."

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

Marine Propulsion

Fishing Vessels Fit with Wärtsilä’s NOx Reducer

Wärtsilä said its new NOx Reducer will be fitted to two new fishing vessels under construction at the Celiktrans yard in Turkey. The ships are owned by HB Grandi,

NCL Spotlights Eco-Smart Cruising Program

On Earth Day, Norwegian Cruise Line NCL) celebrated key achievements from the past year that, as a part of its Eco-Smart Cruising program, help preserve the world's oceans.

Cruise Industry Highlights Environmental Efforts

In commemoration of Earth Day, Cruise Lines International Association (CLIA) today highlighted the extensive efforts of the cruise industry and CLIA member lines

Tanker Trends

Pirates Raid Tanker off Malaysia, 3 Mariners Taken

Armed pirates raided an oil tanker off the coast of Malaysia and took three crew members with them, Malaysian maritime officials said on Wednesday, underscoring

ISS to Support Petrobras Expansion

Inchcape Shipping Services (ISS)  has had its port agency and tanker husbandry services contract significantly enlarged by Petrobras.   The Brazilian government-owned energy giant,

Thinking Outside the MR Tankship Rate Triangle

Although US refined products exports largely underpin medium-range (MR) product tanker demand in the Atlantic Basin, there is little evidence of similar stability

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Ship Electronics 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: 0.1402 sec (7 req/sec)