Brokers See End To Tanker Slide

Friday, November 19, 1999
A continued slide in Middle East tanker rates to near year lows was expected to end this week by the emergence of Saudi stems and a resumption of Iraqi exports, shipping brokers said. VLCC tanker operators' earnings hit their lowest levels yet this year as a result of a combination of heavily depressed Middle East tanker rates and fixtures plus high bunker prices, brokers said. With only eight VLCCs fixed from the Middle East last week, rates to Japan fell to W45 ($4.80 per ton) from around W50 ($5.30) the week before and to about W42.5 ($2.75) for Singapore. Rates to the U.S. Gulf fared no better, dropping a two and a half points to around W42.5 ($7.00 per ton). At these rates a round western voyage would bring returns of $13,500 a day for a modern motor vessel and about $4,000 a day for an older turbine ship - well below operating costs. As a result, VLCC scrapping appeared to be finally taking off with seven units reported sold for demolition in the last ten days. Brokers have long said the fleet would need to be cut before rates rose significantly. But with 80-plus vessels available in the Middle East over the next few weeks, rates were not expected to do a great deal more than stop declining in the immediate future. Meanwhile, last week's hot spot - the North Sea Aframax market - cooled down. After attaining highs of W125 ($4.60 per ton) rates for 80,000-ton vessels on U.K./Continent fixtures fell back to W110 ($4.00) by the end of the week. But the continuing absence of a number of Alandia's tankers due to financing problems and arrests should lead to a further strengthening in rates before the end of the month, brokers said. - (Reuters)
Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Dry Bulk Carrier Newbuilding Orders Surge

Dry bulk carrier newbuilding orders predominate among the contracts reported in the latest issue of the Clarkson Hellas S&P Weekly Bulletin. Dry bulk carriers One

Imperial: Decision on Canadian LNG Project Distant

Imperial Oil Ltd said on Thursday it is not yet close to deciding on whether it will go ahead with a Canadian liquefied natural gas export plant it is exploring

Italian Pleads Guilty to Marine-hose Price-fixing in US

A former executive of Parker ITR Srl pleaded guilty on Thursday to conspiring to rig bids for marine hose and was sentenced to two years in prison, the U.S. Justice Department said on Thursday.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Repair Shipbuilding / Vessel Construction 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: 0.1376 sec (7 req/sec)