Oil Freight Charges News

Oil Freight Charges To Go Higher?

Bloated oil freight charges could surge yet higher this year, adding to the already inflated cost of world oil imports, shippers said. Tanker brokers are predicting a mid-November stampede to ship crude from the Middle East, pushing charter rates to new peaks amid a perceived shortage of quality vessels. In January, very large crude carriers (VLCCs) sailing from the Gulf to Japan were fetching a price of worldscale 49, equivalent to 75 cents a barrel. The rate since has more than trebled and now stands at WS 165, $2.50 a barrel. For a 250,000 ton, or 1.8 million barrel shipment, that means an increased freight charge of $3 million on a $50 million cargo of crude. "Eastern charterers have been paying higher rates," said one VLCC broker. Rates for a 280,000 tonner to the U.S.