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

Tanker Trends

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

Benghazi Port Still Closed, Imports Rerouted

The commercial port in Libya's second city, Benghazi, remains closed due to fighting between pro-government and Islamist forces, forcing wheat imports to make a detour via Tobruk harbour,

EGAS Tenders for as many as 48 LNG Cargoes

Egypt's state-owned gas company EGAS has tendered to buy at least 48 cargoes of liquefied natural gas (LNG) for delivery in 2015/16, three traders said. A senior

Finance

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

US Plans to Shut Royalty Loophole on Coal Exports

U.S. coal companies will no longer be able to settle royalties at low domestic prices when they make lucrative sales to Asia according to reforms proposed by the Interior Department on Friday.

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Offshore Oil Pod Propulsion Port Authority Ship Repair Shipbuilding / Vessel Construction 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: 0.2865 sec (3 req/sec)