Tanker Trends

Friday, March 17, 2000
Mideast Rates Climb As Heavy Fixing Seen

Freight rates for crude tankers loading early April in the Middle East were climbing early last week as shipowners held out for higher prices in expectation of heavy vessel fixing, brokers said. VLCC rates to the U.S. Gulf were expected to rise five or more Worldscale points to W62.5-65 ($10.75 per ton) for the next done fixture, some brokers said. Japan shipment prices were also lifting with the latest bookings at W70 ($7.50 per ton), up from W67.5 in the week before.

"We believe this week will be heavy for one reason alone, there will be placement of barrels West to alleviate the shortage that the U.S. market is stressing," broker Marinav Shipping & Trading forecast in its March 13 report.

"Owners are holding out to get the rates to go higher because of bunker costs," another broker said.

Marinav predicted an early release of Iraqi barrels heading to the U.S. Bunker fuel prices fell back by more than $15 in Singapore to about $178, after going over $200 a week earlier.

However, levels were still high enough to make longhaul journeys uneconomic, particularly for older ships. A lack of suitable modern tonnage available early April for U.S. acceptances was also encouraging owners to push for higher rates.

"Everybody appears to be waiting for the first company to pay over W60 to the U.S.," another broker said.

"If there is a hold back then it will be charterer's playing at getting the best they can out of the owners rather than all coming into the market place like they did four weeks ago," Marinav added.

Other sectors appeared to be softening, though. Slow activity in the Mediterranean and North Sea saw Aframax rates coming off a couple of points to about W167.5 ($5.50 per ton) and W182.5 ($6.75), respectively for modern ships, brokers said. Suezmax business was also quiet with rates largely unchanged from the end of last week. - (Reuters)

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

People & Company News

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

Tanker Trends

Oil is on the Rise

Oil prices rose in early trading on Monday as Asian markets opened strongly into a holiday-shortened week and as consensus spread that Brent crude prices would

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

Benghazi Port Still Closed, Imports Rerouted

The commercial port in Libya's second city, Benghazi, remains closed due to fighting between pro-government and Islamist forces, forcing wheat imports to make a detour via Tobruk harbour,

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Pipelines Pod Propulsion Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar 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: 0.1114 sec (9 req/sec)