Tanker Freights’ Declining Rate to Continue

Monday, April 03, 2006
Global tanker freight rates may be depressed for several more years as a stream of new vessels hit the market and shipowners refrain from scrapping older ships. However, a recovery is likely toward the end of the decade as more single-hulled tankers are taken off the market to meet regulations for safer ships. Tanker rates jumped to record highs in 2004 as a surge in oil trading and demand strained available fleet supply, but they have since retreated despite the still-booming markets for commodities such as oil, copper and sugar. The rate for a supertanker on the benchmark Middle East-Japan Very Large Crude Carrier (VLCC) reached a peak of about WorldScale 344 in November 2004, but has since fallen back to around W65, data from the Baltic Exchange showed. Part of the recent decline is due to the low number of ships scrapped over the past year, when shipowners saw more benefit in continuing to lease out tankers than selling them for scrap. In 2005, ships with the equivalent capacity of 4.5 million deadweight tonnes (dwt) were sold for decommissioning, but the world’s fleet grew by about 7 percent as around 30 million dwt new tankers were built, data from the International Association of Independent Tanker Owners (INTERTANKO) show. A rush of new tankers is on the way: in January 2006, the number of tankers set to be built was around 26.5 percent of the current global fleet size of 4,186 tankers. But more tankers are set to be scrapped as rates hover around two-and-half year lows. According to the Daily Times, the overall health of the tanker market will improve on sustained demand for oil and the need for single-hulled fleet renewal due to international regulations. Global oil demand growth is forecast to grow 1.49 million barrels per day (bpd) in 2006, compared to 1.02 million bpd in 2005. (Source: Daily Times)
Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

GTT Wins DSME Order for 9 More Icebreaking LNGCs

Gaztransport & Technigaz (GTT), a designer of membrane containment systems for the maritime transportation and storage of Liquefied Natural Gas (LNG), announced

Wilhelmsen Secures Inert Gas System Orders

Breakthrough order in Japanese shipbuilding market sees largest ever capacity Maritime Protection IG units delivered for leading domestic owners. Wilhelmsen

Thome Is the First to Sign up to IMPA Act

Leading integrated ship management service provider Thome Ship Management has become the first ship management company to join IMPA ACT, the responsible supply chain management initiative,

Environmental

ABS, MPA to Collaborate on Maritime R&D

ABS and the Maritime and Port Authority of Singapore (MPA) signed a memorandum of understanding (MOU) today to promote maritime research and development (R&D) and innovation.

Concordia Tow Update: Smooth Sailing

The Costa Concordia wreck removal team reported this morning at 10:30 a.m. that after 22 hours of navigation, the convoy was over 50 miles off Giglio Island with about 140 miles from Genoa Prà-Voltri.

Thome Is the First to Sign up to IMPA Act

Leading integrated ship management service provider Thome Ship Management has become the first ship management company to join IMPA ACT, the responsible supply chain management initiative,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.1519 sec (7 req/sec)