Seaborne Oil Trade News

In the dead of night, as his fuel tanker sailed through the narrowest section of one of the world's busiest waterways, Captain Thiwa Saman was wrenched from sleep and pitched into a waking nightmare. Three men with guns and swords were banging on his cabin door. Other pirates had already stormed the bridge, seized the duty officer and smashed up the radio and GPS equipment. Over the next 10 hours, mostly in daylight, the pirates held Thiwa and his 13 crew captive while siphoning off 4 million litres of diesel, worth around $2 million on the black market, to another tanker. They even re-painted the name of Thiwa's ship to confuse anyone searching for it. Then they vanished.

Armed pirates raided an oil tanker off the coast of Malaysia and took three crew members with them, Malaysian maritime officials said on Wednesday, underscoring increasing threats to shipping in one of the world's busiest waterways. The incident in the Malacca Strait, a route for about a quarter of the world's seaborne oil trade, has fueled fears piracy could be on the rise in the area and drive up ship insurance premiums. "We are very concerned," said Noel Choong, head of the International Maritime Bureau's Malaysia-based Piracy Reporting Centre, who added the ship was hijacked while sailing near the Malaysia town of Port Klang. "It's the first time this has happened so far north in the Malacca Strait, and the first time they have kidnapped the crew.

AMRIE (The Alliance of Maritime Regional Interests in Europe) last week presented a series of recommendations aimed at improving levels of oil tanker safety in response to recent Commission proposals on the safety of the seaborne oil trade. The AMRIE Paper calls on the Commission to lead the way in introducing requirements for Black Boxes to be fitted in all existing cargo ships, going beyond the IMO (International Maritime Organization) suggestion of new cargo ships only. AMRIE believes that the speedy introduction of Voyage Data Recorders to all vessels is imperative if the Commission is to achieve a 'Safety Culture' in Shipping. AMRIE…

AMRIE (The Alliance of Maritime Regional Interests in Europe) will today present a series of recommendations aimed at improving levels of oil tanker safety in response to recent Commission proposals on the safety of the seaborne oil trade. The AMRIE Paper calls on the Commission to lead the way in introducing requirements for Black Boxes to be fitted in ALL existing cargo ships, going beyond the IMO (International Maritime Organisation) suggestion of new cargo ships only. AMRIE believes that the speedy introduction of Voyage Data Recorders to all vessels is imperative if the Commission is to achieve a ‘Safety Culture’ in Shipping. AMRIE…

There is a groundswell of commitment for mandating the installation of "black boxes" aboard ships, so that in the in the unlikely case of a disaster, history will not repeat itself. At an estimated cost of $75,000 to $150,000 per ship, however, safety will not come cheaply. If it has not already, in a few years time the name Erika will conjure many of the same emotions and financial achings as the name Valdez. The tanker that broke up and sank off the coast of France just prior to Christmas 1999 has resulted in a veritable groundswell of political and industry activity which will likely result in fundamental changes to the way in which ships — particularly those carrying oil products or hazardous materials — are outfitted and operated.

This month’s edition amply displays how two of the maritime market’s driving forces — technology and legislation — simultaneously clash, meld and otherwise work together and apart to dictate the look, design and outfitting of ships and boats of tomorrow. The marine market, which has often and unfairly been labeled conservative, is embracing many sweeping changes, which are designed to enhance safety and operational efficiency. As usual, the impetus for change has been an unsightly and costly — both in terms of sullied beaches, animals as well as tarnished reputations — casualty. In this instance, the name Erika is being thrown about with the same invective as Valdez was more than a decade ago; a name that is sure to become synonymous with the drive for safer ships.

Oil freight costs that have fallen sharply from record peaks two months ago are helping reduce energy import bills already eased by lower crude prices. Tanker market experts said freight charges that rocketed to unexpected heights in November looked set to remain under control over the next six months at least. Very Large Crude Carriers (VLCCs) delivering crude to Japan and Singapore from the Middle East now charge about Worldscale 85, $1.40 per barrel, having peaked last November at W190, $2.65 a barrel. Supertanker rates to the United States also are lower at about $2.30 a barrel from the Gulf $3.20 a barrel in November. "More new ships will be coming in…

In 2000, VLCCs obtained $53,000 per day, up from less than $20,000 in 1999. Old VLCCs reached $33,000 per day compared with only $11,000 in 1999. The freight market boom also had its effect on medium size crude carriers. After poor market conditions in 1999 with modern Suezmaxes obtaining $15,000 per day the average in 2000 was $40,000. Corresponding figures for modern Aframaxes were $13,000 as an average in 1999, reaching $37,000 in 2000. Peak rates in the year for both types were recorded in December at $60,000 per day. Large clean carriers (LR2) last year obtained $32,000 per day, which is $18,000 higher than the 1999 level. Modern MR types rose from $8,000 per day to $16,000 per day in year 2000, with more than $30,000 in December.