Suezmax Rates Set To Soar

Friday, December 10, 1999
Surging Suezmax tanker rates are set to soar if Iraqi exports come back on stream next week, shipping brokers said on Wednesday. Rates for the one million barrel tankers have lifted to around 100 Worldscale points on fixtures from West Africa and the North Sea to the U.S., and on cross Mediterranean and North Sea routes, brokers said. "Suezmax rates are going to sky rocket if Iraqi exports come back next week," one broker said. U.S. and British envoys to the U.N. said that the Security Council would vote on a straight-forward six month renewal of the humanitarian Iraq "oil-for-food" program last Friday. Iraq has previously said it would accept a renewal of the scheme on previous terms after rejecting two week and one week extensions. With agreement, exports could be expected to start within a few days from the Mediterranean port of Ceyhan, on past experience. "I expect to see a glut of orders on Monday (Dec. 13) with cargoes starting to appear quite quickly," another broker said. "In this overheated Suezmax market, the Mediterranean Could go crazy," he said. Cross Mediterranean rates which had strengthened this week despite the absence of Iraqi cargoes pushed up to W95-100 ($3.30 -3.40) from around W90 ($3.10), brokers said. Recent upward pressure had been the result of a shortage of modern prompt vessels both in the Med and off West Africa. West Africa-U.S. Suezmax rates hit year highs of around W105 ($9.20 per ton) last Tuesday, having climbed from around W72.5 ($6.35) a week before as export restrictions in Nigeria lifted and U.S. charterers sought sufficient modern ships. North Sea to USAC rates were seen hitting W105 ($7.40), brokers said, up from last done fixtures a couple of weeks ago around W70 ($5.00). VLCC rates from West Africa to the U.S. were also rising as some charterers sought to combine stems while Suezmax rates rose. A fixture at W61.25 ($5.40) was reported up from the previous W52.5 ($4.60) benchmark. Middle East VLCC rates were expected to stabilize and possibly rise as a result of Iraqi exports also restarting from Mina al Bakr. A feared meltdown in Mideast VLCC rates had failed to materialize while strong Asian chartering for December underpinned the market over the last two weeks. But with most December cargoes gone there had been fears rates would Collapse if Iraq stayed shut. - (Reuters)
Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Pirates Approach Tanker in Bab El Mandeb

The U.S. Navy Maritime Liaison Office in Bahrain (MARLO) has advised that on or about 12:30 UTC on 14 April, the Master of an oil tanker reported being approached by a white-blue skiff in position 12.

Shippers Turn to Equity Markets as Sector Eyes Recovery

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

YPF Tenders to Buy Fuel Oil for June

State-run oil company YPF launched its second fuel oil tender in April, this time to buy two 50,000 metric ton cargoes (some 375,000 barrels each) to be received

Ports

Canaveral Tops State List for Sand Bypass Funding

The Canaveral Harbor Inlet Sand Bypass Project has earned the top state ranking for 2014/15 inlet management funding. As a result, Port Canaveral is expected to receive $100,

Rotterdam port's throughput almost stable

The Port of Rotterdam’s throughput in the first quarter of 2014, at 109 million tonnes, was 0.2% below the level for the corresponding period last year.Split up by goods type,

CMA CGM Strengthens Madagascar Presence

Since the creation of CMA CGM Madagascar in 2003, container shipping company CMA CGM Group has continued to develop on the island to move closer to its valued customers

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Pod Propulsion Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction 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: 0.4555 sec (2 req/sec)