VLCC, Product Tanker Rates Headed in Opposite Directions
No impact on VLCC rates yet from Hurricane Harvey, even as rates for smaller product tankers double. Freight rates for very large crude carriers (VLCCs) on Asian routes continue to sink on a glut of available tonnage as owners wait for supply disruptions caused by Hurricane Harvey to help support the market, brokers said. Charter rates for VLCCs from the Middle East have fallen to around 36 on the Worldscale measure. "In terms of VLCCs we've not seen much knock-on effect (from Harvey) yet, but I'm sure there'll be some lasting effect," a Singapore-based supertanker broker said. Owners and brokers expect charterers to scramble to hire alternative ships to replace tankers whose loading and unloading schedules have been disrupted by the hurricane.
Frontline Expects VLCC Storage Play to Rise
Tanker firm Frontline, controlled by billionaire investor John Fredriksen, expects a growing number of supertankers to be used for storing crude in anticipation of higher oil prices, its chief executive told Reuters on Friday. While none of Frontline's own vessels are currently used for this purpose, independent shipbrokers estimate that around 10 of the world's very large crude carriers (VLCCs) have recently been contracted for oil storage. "It sounds correct, and the number is rising," Frontline Chief Executive Officer Robert Macleod said. "It's always an option," he added. Frontline has 20 VLCCs, each of wich can carry around 2 million barrels of oil.
VLCC Rates Steady Ahead of Possible Rebound
Five/six charterers are making storage inquiries; near-term pressure on tanker rates to continue - Frontline CEO. Freight rates for very large crude carriers (VLCCs) are set to hold around the current levels ahead of a possible bounce later this month on renewed crude buying from China, and more interest from charterers taking ships on short-term charter for floating storage, brokers said on Friday. That came as VLCC rates from the Middle East recovered slightly on Thursday from a near two-month low hit on Wednesday. "Rates are recovering to high 40s and touching 50s levels on the Worldscale measure," said Ashok Sharma, managing director of ship broker BRS Baxi in Singapore.
Asia Tankers-VLCC Rates Strengthen on June Charters
30-40 Mid-East VLCC cargoes still to be contracted for June; Posidonia shipping event next week in Greece may dampen activity. Freight rates for very large crude carriers (VLCCs) could rise next week as charterers complete their June loading programme, although activity may be muted due to a key shipping event in Greece, ship brokers said. "There is potential for charter rates to firm further. There are plenty of ships but there are enough charters for owners to hold the line," said a Singapore-based supertanker broker on Friday. Charters for 30-40 VLCC Middle East cargoes have still to be fixed for loading in the last 10 days of June, the broker said.
