VLCC Owners Paying Clients to Ship Oil

BTPremium
Tuesday, September 04, 2012

Owners of Very Large Crude Carriers (VLCC) by agreeing to current low rates are effectively paying shippers for the priviledge.

Hire costs for the largest oil tankers are so low and the oversupply of the vessels is so acute that shipowners are paying to carry crude for clients, BTPremium was informed by Braemar Seascope.

Owners of very large crude carriers (VLCCs) that haul two million barrels are losing US$5,700 daily on a return voyage on the industry's benchmark route to Japan from the Middle East, the London-based shipbroker said in a report e-mailed last week. That rate fails to account for possible speed cuts aimed at reducing cutting use of fuel, owners' biggest expense, known in the industry as slow-steaming.

Returns for VLCCs that ship about 20 per cent of seaborne crude are at record lows on the two most profitable routes for the ships, to Asia and the US from the Middle East, as too many tankers compete for business, Frontline Ltd, the largest operator of the vessels, said last week.

Source: BTPremium
 

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Coast Guard Academy Cadet to Receive Fulbright Scholarship

Stephen Horvath, a first class cadet at the U.S. Coast Guard Academy, was recently granted a two-year Fulbright Scholarship to study renewable energy technologies

Ecochlor Presents BWTS Case Study at CMA

Ballast water treatment technology developer Ecochlor Inc. presented a project case study yesterday at CMA Shipping 2015 in Stamford, Conn. The case study covered

Golden Ocean and Knightsbridge Complete Merger

The merger between Knightsbridge Shipping Limited and Golden Ocean Group Limited was approved today at special meetings of both companies' shareholders.      The new company,

Tanker Trends

Stolt-Nielsen Completes Bond Issues

Stolt-Nielsen Limited announced the placement of senior unsecured bonds in a total amount of NOK 1,100 million in a new five-year bond issue carrying a coupon of 3M NIBOR plus 4.

Icebreaker Murmansk Launched at Arctech Helsinki Shipyard

The 16 MW Icebreaker for the Russian Ministry of Transport was launched at Arctech Helsinki Shipyard on March 25th, 2015. Before floating the vessel, she was

Sino-Global Purchases First Tanker

Sino-Global Shipping America, which was recently listed on Nasdaq, is becoming a shipowner.   The shipping agency, logistics and ship management services company

News

Indonesia Partners with China on Maritime

Indonesian President Joko “Jokowi” Widodo and Chinese President Xi Jinping pledged increased maritime cooperation during the formers visit to China.   The joint

China Strengthens Maritime Ties with Pak

The Vice Chairman of China's Central Military Commission General Fan Changlong has pledged to deepen maritime security and military technology cooperation during

Cruise Giant Carnival to Expand its Fleet

The world's largest cruise ship company Miami-based Carnival Corp. has signed agreements with German and Italian ship builders to build nine new ships over a four-year period, starting in 2019.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Port Authority 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: 0.1616 sec (6 req/sec)