VLCC Rates Sag On Asia Route

Friday, April 27, 2001
A huge oversupply of VLCCs for trades from the Mideast Gulf to Asia has led to the most serious market decline in over two years, pushing rates to 13-month lows, brokers said. "The amount of ships compared to cargoes is phenomenal," said a Singapore broker. "Basically, you've got 75-80 ships lined up in the Gulf, so people think if they can find employment and get out of there quick, they'll miss the worst of it." He said rates lost 10 worldscale points ($0.17 per barrel) on Thursday, to reach W58 ($0.98 per barrel) for 250,000 ton cargoes to Japan, and that tanker owners had simply stopped negotiating in their rush to find cargoes. "I think it'll go down further. We'll see at least W50 before it goes back up," he added. Brokers pointed to a fixture to Taiwan's China Petroleum Co (CPC) for a 250,000 ton cargo, as the source of tanker owners' trouble. "The owner took the first counter (bid) from CPC. There was no negotiation at all," said one. "It won't be back in the Gulf for 25 days and by that time he hopes the market will have improved." Brokers said that a slowing of activity out of Al Bakr, Iraq, had primed the market for disaster. "Ships that are usually doing 60-day westbound runs from Al Bakr are now just sitting around in the Gulf." London's Baltic Exchange pegged the route from Ras Tanura to Chiba, Japan at W57 ($0.96 per barrel) on Thursday evening compared to levels of over W100 ($1.69 per barrel) a month ago. Westbound routes from the Gulf also took a severe hit, falling to W65 ($1.83 per barrel) from W79 ($2.23 per barrel) a week ago. - (Reuters)
Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Vestas Profit Beats Forecast

Danish wind turbine maker Vestas Wind Systems posted much higher than expected second-quarter earnings and slightly increased its guidance for the full year, signaling

OSV Hull Arrives at Havyard's Leirvik Yard

Havyard says that newbuild number 118 has arrived from Turkey at the yard in Leirvik, being the first of two vessels that will be outfitted to provide service and

SBI Wins Jack-up Design and Engineering Contract

SBI Offshore Limited, which is pursuing higher-value oil and gas engineering projects, said today it has secured a $24 million contract to provide design and engineering

Tanker Trends

Scorpio Tankers on Major Fleet Expansion

Scorpio Tankers Inc. (NYSE: STNG) (the "Company") announced today that it has reached an agreement with an unrelated third party to purchase an MR product tanker

NOC to Load First Oil in a Year from Es Sider

Libya is due to start loading its first crude oil tanker in a year from top port Es Sider on Tuesday following a year-long blockade by eastern federalists, a Libyan

OceanSaver Reports Surge in BWT Orders

OceanSaver said it has received a rush of ballast water treatment (BWT) system orders for large vessels. The Norwegian firm, a BWT specialist developing solutions since 2003,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair 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: 0.1130 sec (9 req/sec)