ExxonMobil Still Chartering Single Hulled Tankers

Thursday, November 16, 2000
U.S. oil giant ExxonMobil continues to charter single-hull tankers for its oil, tanker brokers said on Thursday.

ExxonMobil has been in the market for a five-year time-charter since late August, brokers said, and has recently been giving serious consideration to a single-hulled very large crude carrier (VLCC) that will be nearly 20 years old by the end of the charter in 2005.

Negotiations, however, have recently reached a stalemate, brokers said.

"The fact that (ExxonMobil) is looking at single-hulled tankers is widely known, but not widely known outside shipping circles," a London tanker broker said.

"We charter both single and double-hull vessels because we believe both configurations offer safe and effective transportation for our products," said an ExxonMobil official.

ExxonMobil observes say that the composition of its fleet reflects the composition of the world fleet, 70 percent of which is single-hulled.

The major has just ordered a new double-hull VLCC from South Korea, and it points to this as a sign of its commitment to safety.

Double-hulled ships are generally considered to offer the best protection against oil spills during grounding. They have become mandatory under OPA90, the law that was introduced in the wake of the Exxon Valdez disaster when a crude spill destroyed wildlife and fish stocks in Anchorage, Alaska.

Double hulls, would probably not have prevented the loss of the tanker Erika off the coast of Brittany last December or the chemical carrier Ievoli Sun in the English Channel last month, shipping sources said.

Oil majors typically use time-charters to protect themselves against day-to-day volatility in the shipping markets.

Brokers say tanker owners responded to Exxon's tender for a five-year time charter with offers of $35,000 per day for single-hulled tankers and over $40,000 for double-hulled units.

The oil major countered with around $27,000 for single-hulls and around $30,000 for double-hulls but owners still refuse to budge.

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

People & Company News

Aberdeen Pupils Peek into Subsea Oil & Gas Technology

Pupils at an Aberdeen primary school were given a rare insight into the depths of the oil and gas industry’s subsea sector after getting to sit in the driving

AVEVA, DNV GL's Sesam Integration Cuts Cost

Integration of Aveva and DNV GL's Sesam Reduces Costs in Maritime and Offshore Engineering. Engineers designing ship hulls and offshore floaters can now save

FORAN for Pertamina's Future Ships

FORAN has been chosen by state-owned company PERTAMINA to review the design of their future oil product carrier ships, under construction in a shipyard with the FORAN System.

Tanker Trends

NITC Claims World's Largest Supertanker Fleet

According to the head of the National Iranian Tanker Company (NITC), Iran has 42 very large crude carriers or VLCCs, each able to carry 2 million barrels of oil, reports Press TV.

Teekay LNG Partners Declares Distribution

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. has declared a cash distribution of $0.70 per unit for the quarter ended June 30, 2015. The cash distribution is payable on August 14,

NITC Tankers Chart Western Course

Iran’s largest shipping company NITC, the privatized Iranian shipping company, is in talks for permission to sail in Western waters, says a report in WSJ.   NITC

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Port Authority Ship Repair Sonar
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: 0.1575 sec (6 req/sec)