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

Tanker Trends

Ingram Barge Order 20 Tank Barges for 2015

Ingram Barge Company say they will be building 20 tank barges in 2015 to meet growing demand for chemical shipments. While most of the company’s recent tank barges have come through acquisitions,

Finland Grants Support to Three Small LNG Terminals

The Finnish government granted 65.2 million euros (84.22 million US dollar) in subsidies to build three small liquefied natural gas (LNG) terminals to cut on use

Senator Says 2015 Could Be Time for US Oil Export Bill

The top supporter in the U.S. Congress for reversing the 40-year ban on crude oil exports, Senator Lisa Murkowski from Alaska, said next year could be the time for a bill on lifting the restriction.

Environmental

MHPS's DeNOx System For Power Plant in Poland

Mitsubishi Hitachi Power Systems (MHPS) has received an order from ENEA Wytwarzanie S.A., a power producer in Poland, for two sets of selective catalytic reduction

Voith Hydropower Equipment for Thailand's Storage Plant

Voith has been awarded a new contract to supply the complete electromechanical equipment for a pumped storage power plant in Thailand. The order for the extension

HERCULES-2 Phoenix Rises from the Ashes

Wärtsilä Corporation advises that the HERCULES R&D programme to develop large engine technologies, which was initiated in 2004 as a joint vision by the two major European engine manufacturing groups,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
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: 0.1691 sec (6 req/sec)