Aframax Rates Jump 40 Percent From Mexico To Venezuela

Thursday, August 02, 2001
The cost of an Aframax tanker to carry crude from Mexico and Venezuela to the U.S. has surged by 40 percent in the last week as cargo owners scrabble over a fast-dwindling fleet, but in Europe trading is dull.

"You won't find a ship available now until August 12, so the ship owners are getting very bullish on rates," one U.S. broker said of the Caribbean market on Wednesday. He pegged the upcoast trade on Aframaxes (70,000 tonners) at W165.

But Thursday morning's fixture lists from Europe showed that Chevron had snapped up the Genmar Agamemnon for August 12 loading at the very firm rate of W175 ($1.29 per barrel), raising the possibility that charterers would have to wait even longer for available ships - representsing a rise of $0.41 per barrel in the course of a week.

"People are fixing further and further out, say two to three weeks, just to secure tonnage," said the U.S. broker.

He said charterers would always pay more to avoid the risk of being caught with a cargo but no ship to load it into.

The market has gained as much as 10 points a day since last Wednesday when it stood at W125 ($0.88 per barrel), brokers said.

Thursday fixture lists showed the first signs of a positive knock-on for Panamax ships (50,000 tonners).

Rates had labored around W130 since demand slackened off during the U.S. Independence day holidays, but Citgo paid W155 ($0.97 per barrel) for the Eleanora, loading at Bajo Grande Venezuela on August 12.

But while owners of Caribbean cargoes were scrambling after any tanker they could find, those with North Sea cargoes were able to take their pick and even force a discount.

"It's not looking too clever in the North Sea right now," a London broker said on Thursday. "Aframaxes were still getting W120 last week, but now they're down to about W105 ($0.56 per barrel)." This followed a sharp fall from W165 in mid-July.

He said the million-barrel ships were getting the "surprisingly firm" rate of W100 for North Sea cargoes heading into North Europe ($0.53 per barrel).

The Mediterranean trade has also traded down, with brokers pegging Aframaxes at W130 for older tonnage and W140 for the very best ships.

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

Legal

Reports: Brazilian Tycoon Batista Investigated For Financial Crimes

Brazils federal police have opened an investigation into former billionaire Eike Batista for financial crimes, including insider trading, manipulation of markets and money laundering,

Shell Commited To Russia Expansion Despite Sanctions

Royal Dutch Shell is committed to expansion in Russia, Chief Executive Ben van Beurden told Russian President Vladimir Putin at a meeting on Friday amid sanctions

Ex-BP Employee Settles Insider-trading Oil Spill Case

A former 20-year veteran of BP plc who oversaw the company's cleanup efforts from the Deepwater Horizon oil spill will pay more than $224,000 to settle civil charges

Tanker Trends

Pirates Approach Tanker in Bab El Mandeb

The U.S. Navy Maritime Liaison Office in Bahrain (MARLO) has advised that on or about 12:30 UTC on 14 April, the Master of an oil tanker reported being approached by a white-blue skiff in position 12.

Shippers Turn to Equity Markets as Sector Eyes Recovery

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

YPF Tenders to Buy Fuel Oil for June

State-run oil company YPF launched its second fuel oil tender in April, this time to buy two 50,000 metric ton cargoes (some 375,000 barrels each) to be received

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Port Authority Salvage Ship Electronics 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: 0.1002 sec (10 req/sec)