Iraqi Standoff Blamed For Low Mideast Gulf - U.S. VLCC Freight Rates

Wednesday, June 20, 2001
Freight for Very Large Crude Carriers (VLCCs) from the Mideast Gulf to the United States has fallen to below $1 per barrel for the first time in over two years.

Oslo brokers said on Wednesday that Exxon had fixed the VLCC Agios Nikolaos for a 269,000 ton cargo to the U.S.Gulf in the first week of July at W35 ($0.99 per barrel).

Eastbound rates have also followed suit, and fixture lists on Wednesday showed two fixtures at W38: the Napa and the New Vista.

The Napa fixture to Thailand in the first week of July represents $0.39 per barrel, while the New Vista fixture to the Far East represents $0.64 per barrel. Both equate to levels almost a quarter of what they were at the start of the year.

London brokers said on Tuesday that the slump was directly linked to the Iraqi-standoff and that there was little prospect of improvement this summer.

Iraq halted its 2.1 million barrels a day of U.N. supervised crude sales on June 4 in protest at Anglo-American plans for a revamp of Gulf War sanctions.

Million-barrel tankers have sustained further losses this week, undermined by the VLCC market. Two VLCC fixtures were concluded out of West Africa at W52.5 ($0.76 per barrel), a fall of over seven points on Friday's levels.

Cheap VLCCs started undercutting million-barrel ships back in April, dragging rates down from W125 ($1.65 per barrel) at the start of May to W82.5 ($1.09 per barrel) today.

The contagion has also spread to the Mediterranean, which is also highly dependent on Iraqi loadings.

Wednesday fixture lists show two million-barrel fixtures from the Black Sea to Europe, the Stemnitsa and the Iran Semnan, at W80 ($0.45 per barrel), indicating that about five points have been eroded from last Friday's W85 ($0.47 per barrel).

Smaller ships have also suffered, with 70-80,000-ton vessels charging W95 in the North Sea ($0.50 per barrel), W120 in the Med ($0.58 per barrel), W135 in Asia Pacific ($1.25 per barrel) and W160 in the Caribbean ($1.18 per barrel).

Maritime Today

The Maritime Industry's original and most viewed E-News Service

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

Tanker Trends

New Methanol Projects to Change Chemical Shipping Patterns

New US and Middle East methanol production capacity being added over the next two years will have serious implications for chemical shipping trade flow patterns,

Frontline 2012, Frontline Merger Completed

Frontline 2012 Ltd. has completed its previously announced merger with Frontline Ltd. , with Frontline as the surviving legal entity and Frontline 2012 becoming

EuronavSells Suexmax Cap Laurent

Euronav NV announced the sale of its Suezmax Cap Laurent for $22.25 million. The 1998-built 146,145-dwt vessel was wholly owned by Euronav.    The vessel was


France-Corsica Ferry Operator SNCM's Takeover Gets EU Clearance

The European Commission has approved the takeover of troubled France-Corsica ferry operator SNCM by Corsican entrepreneur Patrick Rocca, according to a letter seen by Reuters on Tuesday.

Norway's Offshore Shipping Sector Faces Bleak Year

Norwegian companies that provide supply ships and drilling rigs to the global oil industry face a bleak year ahead as contracts disappear and financing options

MacArtney, Moog Focal in Expansion Mode

Moog Focal Technologies Corporation and the MacArtney Group have agreed to intensify their multi-service partnership aiming at expanding their long-term business

Maritime Contracts Maritime Security Naval Architecture Pipelines Pod Propulsion Port Authority Salvage Ship Repair Sonar 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: 0.0817 sec (12 req/sec)