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

People & Company News

Petrobras Downgrade Shakes Market

Moody's shocked bond investors this week with a surprise two-notch downgrade that put Brazilian oil company Petrobras in junk territory. The move was seen by some investors as overly assertive,

Brightoil Reports Steady Growth in Interim Results

Brightoil Petroleum (Holdings) Limited announced its interim results for the six months ended December 31, 2014, reporting steady growth over the period.   During the period,

Davie Building LNG-powered Ferries

Canadian shipbuilder Davie held a keel laying ceremony for MV Armand-Imbeau II, marking the beginning of the hull assembly for this first of two sisterships under

Tanker Trends

Brightoil Reports Steady Growth in Interim Results

Brightoil Petroleum (Holdings) Limited announced its interim results for the six months ended December 31, 2014, reporting steady growth over the period.   During the period,

Lithuania Looks to U.S. for Gas

Lithuanian liquefied natural gas (LNG) importer Litgas has signed a preliminary agreement with a U.S. supplier, looking to lessen the Baltic nation's dependence on Russia.

Atlantic Gas Swings Keep LNG Traders Guessing

MILAN, Feb 26 (Reuters) - Atlantic natural gas markets are seeing some of the biggest price swings in years as volatile European trade, freezing U.S. weather

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1369 sec (7 req/sec)