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

Ports

Amid Yemen Chaos, China Lifts More Oil

China has managed to export a large shipment of crude oil from Yemen over the weekend, ship-tracking data showed on Monday, despite mounting chaos in the country

Reopening Date of Libya Oil Ports Uncertain

It is too early to say when Libyan oil ports Es Sider and Ras Lanuf can reopen after a force loyal to a self-declared Tripoli government pulled out troops from frontlines near to the terminals,

Ocean 3 launched at the AGCT, Rijeka

China Shipping Container Line’s (CSCL) Xin Qin Huang Dao recently made its maiden call at the Adriatic Gate Container Terminal (AGCT), International Container Terminal Services, Inc.

Energy

Keppel FELS Delivers 11th Jackup to Mexico

Keppel FELS Limited (Keppel FELS), a wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has delivered a KFELS B Class jackup rig to Mexican national oil company,

China's Air Drills Roil South China Sea Waters

China's air force conducted its first drill above the western Pacific Ocean on Monday, the Defence Ministry said, in a move that could exacerbate tensions with

Reopening Date of Libya Oil Ports Uncertain

It is too early to say when Libyan oil ports Es Sider and Ras Lanuf can reopen after a force loyal to a self-declared Tripoli government pulled out troops from frontlines near to the terminals,

News

Warships Shell Houthis Outside Yemeni City of Aden

Warships shelled a column of Houthi fighters and troops loyal to former president Ali Abdullah Saleh as they tried to advance on the southern port city of Aden on Monday,

Keppel FELS Delivers 11th Jackup to Mexico

Keppel FELS Limited (Keppel FELS), a wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has delivered a KFELS B Class jackup rig to Mexican national oil company,

IMCA DP Proposal to be Basis for Updating IMO Guidelines

The International Maritime Organization (IMO) has agreed to use the International Marine Contractors Association (IMCA) proposals as the basis for the review of

Logistics

Amid Yemen Chaos, China Lifts More Oil

China has managed to export a large shipment of crude oil from Yemen over the weekend, ship-tracking data showed on Monday, despite mounting chaos in the country

CMA CGM to Add Ships, Pursue More Economies

CMA CGM, the world's third-largest container shipper, announced on Monday plans to order three giant vessels and said higher volumes and profit last year showed

Reopening Date of Libya Oil Ports Uncertain

It is too early to say when Libyan oil ports Es Sider and Ras Lanuf can reopen after a force loyal to a self-declared Tripoli government pulled out troops from frontlines near to the terminals,

Middle East

Reopening Date of Libya Oil Ports Uncertain

It is too early to say when Libyan oil ports Es Sider and Ras Lanuf can reopen after a force loyal to a self-declared Tripoli government pulled out troops from frontlines near to the terminals,

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.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators 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: 0.2077 sec (5 req/sec)