Mideast Crude Tanker Earnings Slip, Ukraine Watched

MarineLink.com
Tuesday, March 04, 2014

By Jonathan Saul, Reuters

Crude oil tanker earnings on the major Middle East route fell on Tuesday as a build up of vessels available for hire weighed on rate sentiment.

Shipping markets continued to monitor developments in Ukraine after Russia sent military forces into the Crimea region of southern Ukraine. Russian President Vladimir Putin said Moscow would only use military force in Ukraine as a last resort. A U.S. official said it was ready to impose economic sanctions on Russia.

The world's benchmark VLCC export route from the Middle East Gulf (MEG) to Japan reached W50.73 in the Worldscale measure of freight rates, or $25,765 a day when translated into average earnings.

That compared with W51.33 or $27,219 a day on Monday and W55.05 or $32,176 a day last Tuesday.

"Higher available capacity in the Middle East continues to weigh on rates out of the region to both Asia and the U.S. East Coast," said Justin Yagerman with Deutsche Bank.

"While the number of available VLCCs in the Middle East decreased by 4 last week to 83, the level remains elevated from a historical perspective."

In January, average earnings reached $61,630 a day - their highest level since February 2010, before that rally lost steam.

VLCC rates from the Gulf to the United States <DFRT-ME-USG> were at W31.63 on Tuesday versus W32.77 on Monday and W34.17 last Tuesday.

Russian navy ships have blocked off the Kerch Strait, which separates Ukraine's Crimea region and Russia, Ukraine's border guard service said on Tuesday. The border guards said the action did not affect civilian traffic through the Strait, which provides access to the Black Sea for ships carrying commodities including grain and oil from Russia.

"Given the sheer size of Russia's energy exports, we would find Western sanctions that actually bite, or Russia ceasing exports as a political tool, both somewhat far-fetched scenarios at this time," said Urs Dur of Clarkson Capital Markets.

"However, if either were to happen, the LNG (liquefied natural gas), crude and product tanker markets would likely spike, as would the price of oil and natural gas, possibly causing significant disruption to the global economy."

Black Sea and Mediterranean crude tanker rates continued to weaken after rallying in January to their highest since 2008 as weather-related disruptions in the Turkish Straits raised the cost of transporting cargoes. Brokers said slower activity had taken its toll on rates.

Rates for suezmax tankers on the Black Sea to Med route to W65.65 or $8,632 a day. That compared with W65.75 or $9,270 a day on Monday and W61.83 or $5,261 a day last Tuesday.

Cross Mediterranean aframax tanker rates were at W86.93 or $7,762 a day on Tuesday. That compared with W87.88 or $8,765 a day on Monday and W84.03 or $6,180 a day last Tuesday.

Average earnings per day are calculated after a vessel covers its voyage costs such as bunker fuel and port fees.

(Editing by David Evans)

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

Finance

Scandlines Ferry Back in Service by End June

The damaged Scandlines ferry M/V Prinsesse Benedikte is being repaired at the Polish shipyard Remontowa and is expected to be ready before the end of June 2015.

Greece Will Sell Piraeus Port Stake in Weeks

The Greek government will sell its majority stake in the port of Piraeus within weeks, the country's deputy prime minister told China's official Xinhua news agency,

India May Add Japanese Soryu-Class Submarines to its Fleet

India is reportedly considering a project to incorporate six Japanese Soryu-class diesel-electric submarines into its fleet, says The Japan Times.   The Defense

Energy

USA Urged Not to Delay Arctic Drilling

The U.S. should immediately begin a push to exploit its enormous trove of oil in the Arctic waters off of Alaska, or risk a renewed reliance on imported oil in the future, reports AP.

Feds Delay LNG’s Port Ambrose Application

The US Coast Guard and the US Maritime Administration (MARAD) have temporarily suspended their review of the proposed Port Ambrose deep-water LNG import terminal.

Austal Graduates 48 4-Yr Apprentices

Austal USA combined two classes to graduate a total of 48 members of Austal’s cutting-edge four-year apprenticeship program yesterday at a formal ceremony held at the Arthur R.

News

Gulf Bridge Express Service to End

The Gulf Bridge Express Service will shortly be terminated with the last roundtrip voyage being MV Saint Nikolaos voyage 00008S, ETA New Orleans on April 22, 2015.

Obangame Express 2015 Concludes in the Gulf of Guinea

Maritime forces from Gulf of Guinea nations, Europe, South America, and the United States and several regional and international organizations concluded the multinational maritime exercise,

Scandlines Ferry Back in Service by End June

The damaged Scandlines ferry M/V Prinsesse Benedikte is being repaired at the Polish shipyard Remontowa and is expected to be ready before the end of June 2015.

Logistics

Gulf Bridge Express Service to End

The Gulf Bridge Express Service will shortly be terminated with the last roundtrip voyage being MV Saint Nikolaos voyage 00008S, ETA New Orleans on April 22, 2015.

China Unveils Action Plan on Maritime Silk Road

China has unveiled the principles, framework, and cooperation priorities and mechanisms in its Maritime Silk Road initiative in a bid to enhance regional connectivity

China Maritime Silk Road to Touch India for Namesake

Chinese officials on Saturday fleshed out some details for the country's ambitious 21st Century Maritime Silk Road (MSR) project in its “one belt, one road,” action plan.

Middle East

Mediterranean Rescue Operations Strain Shipping

The Wall Street Journal ran a story yesterday describing how the increasing number of seaborne migrants making the journey from Africa to Europe has not only

Turkey Maritime Sector Alive & Kicking

Located on the periphery of two great continents, Turkey has benefitted from being in a favored position right at the center of an assertive and fast growing economic area.

Port of Aden Under Threat with Enemy at the Gates

As Saudi Arabia and its Arab allies stage air strikes against Shi'ite Muslim militiamen threatening to topple Yemeni President Abd-Rabbu Mansour Hadi, the southern

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pod Propulsion Ship Electronics 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: 0.1418 sec (7 req/sec)