Period Contracts Rise

There has been a marked increase in period contracts since January 2000. Not only has period chartering activity increased, but the length of the periods has also increased and there have again been several contracts above one-year. It is also interesting to see that it is the trader VITOL that has been one of the most active time charterers with 11 contracts, of six months and above, recorded since the beginning of 2000. We have recorded 8 contracts for another trader, Alpine. We have recorded some 200 contracts over the period, Hanjin and Petrobras being the most active charterers with 11 contracts each of at least 6 months. We have recorded 11 charterers taking 5 tankers or more for 6 months and longer. These charterers have altogether made 87 contracts. Some 32 of the 74 charterers that have taken tankers on contract of 6 months and longer have only made one contract. The figures include 16 independent tanker owners having made altogether 28 contracts. According to Intertanko's records, the most active time charterers have been: Vitol 11, Petrobras 11, Hanjin 11, Navion 10, Alpine 8, Shell 7, Glencore 7, ExxonMobil 6, SK Shipping 5, PDV Marina 5 and CNR 5 contracts. Whereas the average length of the contracts of 6 months and longer was 0.9 years in 1999, it was 1.4 years in 2000, and 2.2 thus far in 2001. We have recorded some 63 contracts of two years and longer since January 2000. The period rates have also increased with the increasing spot market. Even if the simple average does not give an entirely correct picture, average time charter rates according to our records jumped from 12,579 in 1999, to 20,351 in 2000 and have moved further up to $22,601 per day in 2001. (source: Intertanko)