Ship Glut Pressures Mideast Crude Tanker Rates

Posted by Eric Haun
Tuesday, May 13, 2014

Crude oil tanker earnings on the major Middle East route remained under pressure on Tuesday as the market struggled to absorb a glut of tankers due to slower business.

The world's benchmark VLCC export route from the Middle East Gulf (MEG) to Japan reached W36.71 in the Worldscale measure of freight rates, or $5,550 a day when translated into average earnings.

That compared with W36.85 or $5,430 a day on Monday and W38.42 or $8,273 a day last Tuesday.

"(VLCC) rates remain at a relatively weak level due to high vessel availability," Pareto Securities said. "With high vessel availability over the next month we see limited room for a sudden uptick."

In January, average earnings reached just over $61,000 a day - their highest since February 2010, before the rally lost steam.

"There is real worry about what will happen for June dates with an inadequate volume creating a larger over-supply of vessels as the summer months are soon upon us," RS Platou Markets said separately.

"That said, we expect refinery demand to revive strongly from June as Asian refinery maintenance ends. Evidence of higher activity should lift spirits."

VLCC rates from the Gulf to the United States were at W25.69 on Tuesday versus W25.77 on Monday and W26.35 last Tuesday.

Rates for suezmax tankers on the Black Sea to Med route softened to W56.90 or $1,154 a day. That compared with W57.15 or $1,414 a day on Monday and W56.77 or $1,176 a day last Tuesday.

Cross Mediterranean aframax tanker rates were at W77.50 or $3,019 a day on Tuesday. That compared with W77.45 or $2,947 a day on Monday and W78.20 or $3,312 a day last Tuesday.

"Rates for suezmax voyages in the Med and Black Sea regions were roughly flat week-on-week on little activity," said Deutsche Bank analyst Taylor Mulherin.

"Spot earnings in the aframax market did not hold up as well ... Weakness was driven largely by reduced activity in Med region."

Black Sea and Mediterranean crude tanker rates are still off their peak in January when they rallied to their highest since 2008 as weather-related disruptions in the Turkish Straits raised the cost of transporting cargoes.

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

(By Jonathan Saul; Editing by David Evans)

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

Tanker Trends

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

MARAD Seeks Comments on Proposed Policy for Deepwater Export Applications

The Maritime Administration (MARAD) is seeking comments on the agency’s proposed policy to accept, evaluate and process license applications for the construction

Oil Drillers Group to Fight U.S. Export Ban

More than a dozen U.S. oil producers have joined to lobby the federal government to reverse the 40-year-old ban on U.S. crude exports, a move that supporters hope

Ports

UN: Ship Inspections near Somalia for Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

UN Authorizes Ship Inspections Near Somalia For Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Liebherr to Deliver RTGs to Mayotte and Manila

Liebherr confirms orders for variable speed RTGs and electric RTGs. DPWorld Asian Terminals Inc. has placed an order with Liebherr Container Cranes for a further 5 RTGs at its Manila facility.

Energy

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

Areva-Siemens Raises Claim Over Finnish Reactor Delays

The French-German consortium Areva-Siemens , the supplier of Finland's much-delayed Olkiluoto-3 nuclear reactor, has increased its claim against Finnish utility Teollisuuden Voima (TVO),

16 Die in Coal Mine Accident in China

Sixteen workers were killed after a coal mine collapsed in China's far western region of Xinjiang, the official Xinhua news agency reported on Saturday, highlighting

News

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

USCG to Ensure Safety During World Series

The Coast Guard and local agencies are working to ensure the safety of boaters and baseball fans during World Series games at AT&T Park this weekend. The

Areva-Siemens Raises Claim Over Finnish Reactor Delays

The French-German consortium Areva-Siemens , the supplier of Finland's much-delayed Olkiluoto-3 nuclear reactor, has increased its claim against Finnish utility Teollisuuden Voima (TVO),

Logistics

UN: Ship Inspections near Somalia for Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Singapore Bunker Meter Mandate Targets 'Frothy Fuel'

Singapore, the world's biggest bunkering port, plans to end the so-called "cappucino effect" in ship fuelling through new meters designed to stop suppliers from short-changing customers,

Antwerp Port Achieves Highest Throughput

The port of Antwerp handled a freight volume of 148,344,168 tonnes during the first nine months of this year. That’s 3.7% more than the same period last year. Both

Middle East

DP World Receives 1st Scheduled Vessel at New Terminal

DP World has yesterday welcomed the first scheduled vessel to call at its new Container Terminal 3 in Jebel Ali, Dubai, as it gears up to serve customers at the state-of-the-art facility.

US Warns of Sanctions on Buyers of Islamic State Oil

The Obama administration on Thursday threatened to slap sanctions on anyone buying oil from Islamic State militants in an effort to disrupt what it said was a $1-million-a-day funding source.

KOTC Takes Delivery of Product Tanker Mutriba

Classification society ClassNK said it has completed work on the 31,445 GT product tanker Mutriba, built by Hyundai Mipo Dockyard Co., Ltd. (HMD) as part of a series

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Pod Propulsion Port Authority Ship Repair Ship Simulators 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: 0.1413 sec (7 req/sec)