Report: Short Term Strength for VLCCs

MaritimeProfessional.com
Wednesday, June 19, 2013

Drewry’s latest Tanker Insight reports that freight rates in most vessel categories remained on the softer side during the month due to weakness in chartering activity in the major loading regions barring Arabian Gulf. The same was reflected in the Drewry Tanker Earnings Index that declined 31% during the month to 31.2.
Despite this, the overall spot chartering activity in the dirty tanker market manage to inch higher in May on the back of strong in activity in AG. About 87 million tonnes of crude oil was fixed for shipments during the month, against 76 million tonnes last month.


In contrast, The freight rates in the very large crude carriers (VLCC) market got some stimulus in May with an uptick in long haul fixing from the Arabian Gulf (AG) on both sides of the Suez. About 40.0 million tonnes of crude were fixed for shipment in VLCCs compared with 30 million tonnes in April.
The spot rates in the tanker sector, especially for large vessel categories, have been very unattractive and owners are finding it difficult to recover the operating cost of their vessels.  In such a scenario, a modest recovery in freight rates in May gave some solace to the owners.


Spot rates on benchmark TD3 (AG-Japan) route increased by 15% to World Scale (WS) 38 pushing the vessel earnings in the positive territory at $4,100pd. Similarly, spot rates on West Africa to China inched higher by WS3 points to WS37.   However, looking at the seasonal weakness in demand and ample tonnage supply, the current firmness in rates might prove short lived.


The Drewry Tanker Earnings Index takes 11 different trade routes covering both the crude and product sectors of the tanker market. Each route is weighted within its market to produce a monthly time charter earnings index. January 2002 has been designated the starting point at which all the indices = 100.
 

Maritime Reporter November 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

ClassNK Registered Al Kout Delivered to KOTC

Leading classification society ClassNK announced that it has completed work on the 165,178GT VLCC Al Kout, built by Daewoo Shipbuilding & Marine Engineering Co.

DNV GL Approvals for SAACKE Scrubbers

Classification increases planning certainty for exhaust gas scrubber operators.   The classification society DNV GL has certified the SAACKE exhaust gas scrubber

China to Import 335 MT of Naphtha, Wants More

China is set to import more than 335,000 tonnes of naphtha and diesel, rare moves for the world's no. 2 oil consumer given it has been self-sufficient at meeting domestic oil product demand,

Finance

Royal IHC Bags Dredging Package Order

  Royal IHC (IHC) has secured a new contract with the Chinese shipyard, Jin Hai Heavy Industrial Group, for the delivery of a dredging installation package for a trailing suction hopper dredger.

Italy Ending Med Sea Rescues

Rights groups warn of risk of more deaths; EU mission Triton will have more limited scope. Italy said on Friday it would close a sea rescue mission that has saved the lives of more than 100,

St. Lawrence Seaway Workers Extend Strike Deadline

The union that represents workers on the St. Lawrence Seaway, the waterway that links the Great Lakes and the Atlantic Ocean, has extended a strike deadline to Monday at 5 p.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Repair Ship Simulators 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: 0.1213 sec (8 req/sec)