Marine Link
Thursday, October 20, 2016

Secrecy In Tanker Market Said To Be Depressing Rates

December 1, 1999

Increased secrecy in the tanker chartering market may be pushing rates lower, even though many brokers and owners like the idea of doing private business. Always a secretive business where only a proportion of trading was made public, more tanker chartering is being done directly through a single broker rather than put out to tender, according to shipping sources. But ship owners and some brokers say charterers are able to dictate rates because they have more information about cargo and ship availability and can influence the perception of supply and demand. Despite this, most tanker brokers generally prefer private business even if it means they cannot compete for some cargoes. Even in good times, underbidding pushes down rates and depresses commissions because owners are desperate to quote for business without knowing whom they were competing against, brokers said. The demise this year of an electronic tanker trading system in which vessels and cargoes could be tendered on screen in an open market community has also played a part, according to some brokers.

Maritime Reporter Magazine Cover Oct 2016 - Marine Design Annual

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News