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.

Tanker Trends

VLCC Delivered to Gener8 Maritime

Gener8 Maritime, Inc., a U.S.-based provider of international seaborne crude oil transportation services, announced that it has taken delivery of the ECO VLCC the Gener8 Macedon on August 30,

US Oil Output Seen on the Rise

Large U.S. shale oil companies, flush with cash raised through stock offerings, are gobbling up properties in the Permian Basin straddling Texas and New Mexico, a trend that could boost U.

Wärtsilä BWMS for Three Maersk Tankers

Maersk Tankers A/S of Denmark has selected Wärtsilä's Electro Chlorination (EC) Ballast Water Management System (BWMS) for three new 50,000 DWT medium range (MR)

Finance

Global Fallout from Hanjin Collapse

When Hanjin Shipping, Korea's largest and one of the world’s top ten container carriers, filed filed for court receivership after losing the support of its banks,

Ship Finance 2016 Q2 Reveue Falls

Ship Finance International Limited earnings missed the Street expectations for the second quarter. Quarterly charter revenues $159m versus $174m in last quarter.

KfW IPEX-Bank Boosts its Presence at SMM

In an interview the departing head of the KfW IPEX-Bank Maritime Industries department, Dr. Carsten Wiebers offers insight into the facets of international ship

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Shipbuilding / Vessel Construction Sonar
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: 0.0710 sec (14 req/sec)