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

Tanker Trends

Pirates Approach Tanker in Bab El Mandeb

The U.S. Navy Maritime Liaison Office in Bahrain (MARLO) has advised that on or about 12:30 UTC on 14 April, the Master of an oil tanker reported being approached by a white-blue skiff in position 12.

Shippers Turn to Equity Markets as Sector Eyes Recovery

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

YPF Tenders to Buy Fuel Oil for June

State-run oil company YPF launched its second fuel oil tender in April, this time to buy two 50,000 metric ton cargoes (some 375,000 barrels each) to be received

Finance

Shipping Turns From Banks to Equity Markets for Cash

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

Canaveral Tops State List for Sand Bypass Funding

The Canaveral Harbor Inlet Sand Bypass Project has earned the top state ranking for 2014/15 inlet management funding. As a result, Port Canaveral is expected to receive $100,

Rotterdam port's throughput almost stable

The Port of Rotterdam’s throughput in the first quarter of 2014, at 109 million tonnes, was 0.2% below the level for the corresponding period last year.Split up by goods type,

 
 
Maritime Contracts Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.0729 sec (14 req/sec)