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

People & Company News

Location of New Port Expansion Projects: Analysis

When it comes to port development, many governments now favour letting the market decide where expansion should take place, whereas most other transport infrastructure,

Europe Sleep Walking into an Energy Crisis: Analyst

The downing of flight MA17 has prompted calls for further sanctions on Russia targeted at its energy sector. Douglas-Westwood in its 'DW Monday' analysis considers

GAC North America Passes the Helm to Schensema

GAC says it  has moved Claus Schensema to Houston, Texas, where he will take up the post of Managing Director of GAC North America Logistics. Schensema brings

Tanker Trends

Jones Act Tanker Chartered for Airline Refinery

Delta Air Lines Inc's refining unit has chartered a U.S.-flagged oil tanker for the first time, allowing it to tap directly into cheap Texas shale oil as the company overhauls its supply strategy.

Horizon Delivers 4th 74’ Towboat for Canal Barge Co.

Horizon Shipbuilding, Inc., Bayou La Batre, AL, has delivered the fourth in a series of 74’ towboats to Canal Barge Company, Inc. of New Orleans, LA.    The Jane

Asia VLCC Rates Could Nudge Higher on Activity

Rates for very large crude carriers (VLCCs) on key Asian freight routes could hold steady or gain next week as charterers seek to complete their vessel chartering

 
 
Maritime Standards Naval Architecture Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Sonar
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: 0.1176 sec (9 req/sec)