Tanker Rates Expected To Rise In Year's First Half

Friday, January 07, 2000
Large tanker rates will increase during the first half of 2000 but freight prices will ease in the second period as new VLCCs are delivered, Norwegian shipbroker P.F. Bassoe A/S & Co. said. Bassoe predicts that tanker demand will increase by 2.6 percent over 2000 on the basis that OPEC output restraints would remain in place until March 2000 and a gradual production increase will follow. Increased crude exports would be driven by rising Asian demand and a slight increase in U.S. imports, the broker said in its report for 1999. The creation of a 38 strong pool fleet of VLCCs early this year by a group of six major tanker owners could also help lift rates, Bassoe said. "We expect there may be a short term tightening and firmer rates during the first half of 2000 driven by increased crude exports as well as the initial impact of the VLCC pool," the broker said. The pool would account for 37 percent of modern spot tonnage not owned by oil majors, it said. However, many shipping analysts believe the pool will not be large enough to be able to influence freight rate levels. Bassoe also said it expected the pressure on rates to ease off during the second half as the 38 vessels to be delivered in 2000 enter the market. Depressed rates in 1999 led to a final tally of 35 UL/VLCC and 24 Suezmax tankers being sold for demolition over the year, compared with 15 and seven respectively in 1998. However, scrapping did not quite reach the level of new vessel deliveries last year and firmer rates in 2000 meant the demolition rate was likely to drop again, Bassoe said.
Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Petroecuador Tenders to Buy High Octane Naphtha

State-run Petroecuador has launched two tenders to buy a total of 22 cargoes, 240,000 barrels each, of high octane naphtha RON 87 and 93 for delivery starting on May 21-23,

Fredriksen Joins Rival for New Capesize Firm

Shipping tycoon John Fredriksen is joining one of its shipping firms with rival Knighsbridge Tankers Ltd to create the largest U.S. listed Capesize firm, which

Global Shipping Exposed to Cyber Threats

The next hacker playground: the open seas - and the oil tankers and container vessels that ship 90 percent of the goods moved around the planet. In this internet age,

Finance

Petroecuador Tenders to Buy High Octane Naphtha

State-run Petroecuador has launched two tenders to buy a total of 22 cargoes, 240,000 barrels each, of high octane naphtha RON 87 and 93 for delivery starting on May 21-23,

DP World in Talks With Banks for $3b Loan

Dubai-owned port operator DP World is in talks with lenders to triple the size of an existing $1 billion loan, as well as extend the lifespan and reduce the interest rate,

Norway's Oil Sector May Face More Project Cuts, Delays

More oil and gas projects in Norway could be put on hold because of rising costs, adding to a growing list of developments that have been delayed or called off,

 
 
Maritime Security Maritime Standards Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators 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: 0.0870 sec (11 req/sec)