Charter Rates Boost for Tanker Owners

Monday, December 10, 2007
Oil tanker owners are celebrating one of the industry's most notable turnrounds after charter rates for some vessel classes multiplied around seven times in the space of a few weeks. Owners of Very Large Crude Carriers (VLCCs), capable of carrying 2m barrels of oil, have been chartering their vessels for as much as $150,000 a day in the past two weeks, against only just over $20,000 in early November. The spike results mainly from industry fears about the effect on tankers of the strong market for shipping dry bulk cargo, where owners can earn up to $180,000 a day chartering out the largest, Capesize, ships.

Owners of single-hull tankers - due to be phased out for environmental reasons by 2010 - are increasingly converting them into bulk carriers, reducing the supply of tankers. The concerns have come just as many customers are seeking to ship oil to replenish depleted inventories. Market conditions are most beneficial for operators that concentrate on the short-term spot market, chartering out their vessels on a voyage-by-voyage basis, instead of agreeing long-term charters with customers such as oil majors.

Two Oslo-based owners - Frontline, operator of the world's largest tanker fleet, and US-listed Nordic American Tanker Shipping - are heavily exposed to the spot market. Nordic American currently owns 12 Suezmax tankers, carrying 1m barrels of oil each.

Some owners that charter their vessels out on a long-term basis have also benefitted, according to George Saroglu, chief operating officer of Athens-based, New York-listed Tsakos Energy Navigation. Many of his company's long-term charter agreements included an element linked to the spot rate.

However, there are questions about how long rates can stay at present levels. Saroglu said he expected similar market conditions for the next six to eight weeks, while conditions after that would depend on the severity of the northern hemisphere winter. Fearnleys, an Oslo-based tanker broker, says in its weekly report that conditions have already become more uncertain. Source: Financial Times

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

Tanker Trends

Libya Plans to Sell Ex-rebel Tanker

Libya plans to sell a tanker that a former rebel group used in an attempt to bypass the Libyan government and export oil on its own last year, the Tripoli-based state prosecutor said on Thursday.

G E Shipping delivers “Jag Aakash” to Buyers

The Great Eastern Shipping Company Ltd. delivered the new building Kamsarmax Dry Bulk Carrier “Jag Aakash” (81,600 dwt) to the buyers.  The vessel was contracted for sale in August 2015.

Dorian Acquires 2 ECO VLGC

Dorian LPG, an owner and operator of modern Very Large Gas Carriers ("VLGCs"), reported today that it has taken delivery of the ECO VLGC Commodore from Hyundai

Education/Training

Transas Expands ECDIS Training Network in China

The New Alliance Marine Training Center (NAMTC) has joined the Transas Global ECDIS Training Network (GET-Net), and shipping companies can now benefit from an ECDIS

Drilling Down into Risk Management

Afloat or ashore, we cannot eliminate risk, but it can be sensibly managed to a tolerable level. It begins with a hypothetical, but worryingly authentic, tale

Nominations Invited for BIMCO Awards

BIMCO, the world’s largest international shipping association is now calling for nominations for its prestigious awards, to be presented in Hamburg in November 2015.

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Simulators 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: 0.4331 sec (2 req/sec)