Iran Has Too Few Tankers to Sustain Oil Flow

Tuesday, March 13, 2012

Oil exports from Iran, OPEC’s second-largest producer, may drop because the nation’s tanker fleet is too small to carry all its cargoes, as European Union sanctions cause international ship owners to avoid the country.
NITC owns 39 vessels, able to carry about 70 million barrels of crude, according to its website. The fleet would be insufficient to deliver the nation’s monthly exports of about 65 million barrels because journey durations can be as long as two months, said Dag Kilen, an analyst at Fearnley Consultants A/S, a unit of Norway’s second-largest shipbroker. Sanctions already cut shipments by 300,000 to 400,000 barrels a day, Barclays Capital said on March 7.
Frontline Ltd., Overseas Shipholding Group Inc. and owners of at least 100 supertankers said a month ago that they would no longer call at Iran because of an insurance ban, announced January 23 by the European Union as part of a wider sanctions package. The prohibition, due to take full effect July 1, extends to 95 percent of the supertanker fleet, because companies providing coverage must follow EU law.
“The fleet itself is not big enough to ship all the oil they are normally exporting,” Kilen said by phone March 9. “I would expect to see a decline in exports as a consequence of Iran not having a national fleet big enough to export the normal volume.”
NITC commercial director Habibolah Seyedan declined to comment by phone from Tehran.
NITC owned six of the seven tankers which called last week at Kharg Island, Iran’s largest oil terminal, compared with five of eight vessels the week before, according to ship-tracking data compiled by Bloomberg. Iran’s fleet accounted for 73 percent of the port’s shipments so far this month, against 56 percent in February and 37 percent in January, the data show.
Half of the tankers booked to load at Kharg Island last month failed to complete the voyages, according to brokers, company officials and ship-tracking data. Crude traded in London is up 16 percent this year to $125.01 a barrel.
U.S. and EU leaders are tightening pressure on Iran over its nuclear program, which the government in Tehran contends is for civilian purposes. Iran pumped 3.45 million barrels of oil a day last month, the least since September, 2002, according to data compiled by Bloomberg. Exports averaged about 2.2 million barrels a day, the U.S. Energy Department estimates. Oil sales earned the Persian Gulf country $73 billion in 2010, accounting for about 50 percent of government revenue.
“Owners are not going because of the sanctions restrictions,” said Nikos Varvaropoulos, a Dubai-based official at Optima Shipbrokers Ltd. “This is causing a real constraint  on Iranian oil shipments.” (Bloomberg)
 

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

Offshore

Harkand: Expanding the Fleet, Growing a Global Business

International inspection, repair and maintenance (IRM) company Harkand aims to be a $1 billion company. MR’s Tom Mulligan recently met with John Reed, the company’s CEO,

HHI Orders Regasification Systems from Wärtsilä

South Korean shipyard Hyundai Heavy Industries (HHI) has ordered two seawater/propane based regasification modules from Wärtsilä. The systems are to be installed

Hitachi Gas Supply System Order for MHI

Mitsubishi Heavy Industries, Ltd. (MHI) has received an order from Hitachi Zosen Corporation for a high-pressure gas supply system enabling use of natural gas as fuel in marine engines.

Tanker Trends

Strong Returns for Sovcomflot

Russia’s biggest shipping company PAO Sovcomflot (SCF Group) surpassed its own expectations and went forward on both revenue and net profit in the first six months.

CSDC Profts Soar

The bulker and tanker unit of state conglomerate China Shipping Group, China Shipping Development Co (CSDC) has delivered a first half performance which saw its profit spike,

Med Crude-Russian Urals Edges Lower in Med, Baltic

Russian Urals crude weakened in the Mediterranean and in the Baltic on Friday, while trading activity was limited ahead of a long holiday weekend in Britain, traders said.

News

China Merchants Profit up 29pct

While China’s ports continue to face growth pressure, the country’s largest port operator is reaping the rewards of years of investments in overseas projects.   China

Swire Upgrades Asia-Pac Coverage

Singapore-based liner trade division of The China Navigation Company (CNC) Swire Shipping has upgraded its multipurpose liner service coverage in the Asia Pacific region.

Baltimore Port Shipments Hit New Record

Helen Delich Bentley Port of Baltimore's public terminals shipped a record 9.74 million tons of general cargo in the 2015 fiscal year ending June 30, it said Monday.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.4779 sec (2 req/sec)