Vlcc News

25 May 2020

BIMCO Tanker Rate Analysis: Reality Kicks In, Rates Fall

Source: BIMCO, Clarksons

Tanker shipping: sky high freight rates replaced by reality of falling global oil demandGeopolitical tensions have now eased, leaving freight rates to feel the full effects of the weak underlying market and falling demand. Tanker shipping looks set to be under pressure for the rest of the year.Demand drivers and freight ratesThe tanker shipping industry was once again caught in a whirlwind, as freight rates skyrocketed with little regard to the poor market fundamentals before the latter once again caught up with rates.

21 May 2020

ABS Launches Guide for Wind-assisted Propulsion Systems

Viking Grace (Photo: Viking Line)

ABS has published the ABS Guide to Wind-assisted Propulsion System Installation, providing class safety standards when installing wind-assisted systems.The classification society said its new guide is applicable to both Flettner rotors and wing sails, including both rigid and soft sails. These wind-assisted propulsion technologies have been gaining attention as operators seek new ways to reduce fuel costs as well as their environmental footprint.“Wind-assisted propulsion systems…

21 May 2020

Hyundai Heavy Bags Double VLCC Order

Illustration - Credit: HHI

South Korea's shipbuilding giant Hyundai Heavy Industries has secured an order to build two very large crude carriers for unnamed European shipowners.The value of the orders for two 300,000-ton VLCCs, which will be equipped with scrubbers to meet IMO emission regulations, is 200 billion South Korean Won ($162.5 million).The VLCCs will be 330 meters long, 60 meters wide, and 29.7 meters high. Hyundai Heavy, who says it has built one in four VLCCs worldwide, will build the two VLCCs…

20 May 2020

SFL Buys Newbild VLCC with Long-Term Charter Secured

For illustration only - Image by Björn Wylezich - AdobeStock

Shipowner SFL Corporation has agreed to buy a newbuild 308,000 dwt very large crude carrier (VLCC), in combination with a seven-year bareboat charter with an unnamed oil major, adding nearly $60 million to SFL’s fixed-rate charter backlog.The vessel is expected to be delivered from the shipyard in China in the second quarter and will have full cash flow effect in Q3 2020. "The net purchase price will be $65 million, which is significantly below current broker estimates for VLCC resales…

19 May 2020

China Merchants Orders VLCC with Sails

One of the two 307,000-ton tankers on order will adopt a sail propulsion system (pictured), and the other will feature air lubrication (Photo: China Merchants Shipping)

China Merchants Energy Shipping said it has ordered a pair of 307,000 DWT very large crude carriers (VLCC) from China Shipbuilding Group's Dalian Shipbuilding Industry Company (DSIC), including one vessel that will be fitted with sail propulsion and another with air lubrication technology.The order was formalized during a virtual ceremony attended by representatives in Beijing, Hong Kong and Dalian.The two new vessels with emissions reducing technologies follow four VLCCs ordered by China Merchants at the shipyard in November 2019.In 2018…

19 May 2020

China's DSIC Delivers VLCC CSSC Liaoning

Newbuild tanker CSSC Liaoning (Photo: DSIC)

The 308,000 DWT very large crude carrier (VLCC) CSSC Liaoning, constructed for a leasing company of China Shipbuilding Trading Company (CSTC) by Dalian Shipbuilding Industry Company (DSIC), was christened and delivered on May 8.The new generation VLCC independently developed by DSIC has a total length of 332.95 meters and a molded breadth of 60 meters. When the navigational draft is 20.5 meters, the ship can normally lade 2 million barrels of crude oil through the Straits of Malacca…

15 May 2020

VIDEO: SBM Offshore's Liza Unity FPSO Moves to Dry Dock

SBM Offshore’s first Fast4Ward hull arrives at Keppel yard in Singapore from China. Photo credit Lim Weixiang

SBM Offshore, the Netherlands-based FPSO supplier, has shared a video of its Liza Unity FPSO Hull going into the dry dock in Singapore.The hull was ordered on speculation in 2017 as the first of what are now five hulls being built as part of SBM Offshore's Fast4Ward standardized-FPSO-hull program. ExxonMobil then came out as the suitor for the unit, and the FPSO will be deployed at its Liza field in Guyana.The Liza Unity hull was built by Shanghai's SWS shipyard and has recently arrived in Singapore for topside integration.Shortly after arriving in Singapore in February 2020…

11 May 2020

Sinopec's Largest Petrochemical Port Starts Operations with VLCC Arrival

New Renown, Crude Oil Tanker (VLCC) from Middle East, Docked at 300,000-ton Crude Oil Terminal of Sinopec Zhongke Refinery Port.

China's energy and chemical giant Sinopec has said it has put China's largest petrochemical port into operation with the successful docking and unloading of the New Renown, a very large crude carrier (VLCC) from the Middle East. The tanker was welcomed at the new 300,000-ton crude oil terminal of Sinopec Zhongke Refinery Port, which forms part of the company's "front terminal, rear plant" production model.Located 1,100 meters from Sinopec's refinery, the petrochemical port features eight terminals including a 300…

08 May 2020

Euronav Sells 2005-Built VLCC for $38M

TI Hellas - Credit: Euronav

Tanker operator has sold its 2005-built Very Large Crude Carrier (VLCC) TI Hellas for $38.1 million.Euronav, based in Belgium, said Friday that a capital gain of around $1.6 million will be recorded in the current quarter from the sale of the VLCC:"The vessel will be delivered to her new owners at the end of May after completion of the current voyage. Euronav considers regular fleet rejuvenation an important function of vessel management in providing quality services to our clients…

06 May 2020

Crude Oil Tanker Earnings Drop 68% in Nine Days -BIMCO

© Björn Wylezich / Adobe Stock

Crude oil tanker earnings have come down sharply in recent weeks with very large crude carrier (VLCC) earnings from the Middle East Gulf to China dropping 68% in just nine days (from $222,591 per day on April 22 to $71,885 per day on May 4), according to BIMCO. In the same period, daily VLCC earnings from the Middle East Gulf to the U.S. Gulf have plunged nearly 80% (from $162,433 per day to $36,249).The window of extraordinary earnings closed at the end of April with the OPEC+ oil production cuts of 9.7 million barrels per day (bpd) on May 1, reducing the flood of oil in the market.

30 Apr 2020

Three of Five Converted VLOCs Are No Longer Operating -BIMCO

© Zdenar Adamsen / Adobe Stock

Converted very large ore carriers (VLOC) are increasingly becoming a thing of the past with the long-term freight contracts coming to an end as newer and more reliable ships replace them in the market. Since June 2017, 43% of the VLOC fleet have been sent to the scrapyards, while 18% of the fleet is idled or damaged.“The tragic Stellar Daisy accident brought the safety aspect of VLOCs into question. Now, three years on, three out of five VLOCs are no longer in operation as their long-term charters have now expired.

24 Apr 2020

Supertanker Rates Ease After Spike. Could Jump Again Soon

For Illustration - Image by Fotos von Schiffen - AdobeStock

Supertanker freight rates eased this week as surging demand for floating storage cooled and crude oil output is set to fall, but rates could jump again as fewer tankers become available and as traders take advantage of weak oil prices, sources said.Tanker rates jumped earlier in the week after U.S. WTI crude futures for May turned negative ahead of their expiry for the first time ever on Monday as desperate traders paid to get rid of oil, prompting a spike in demand for tankers…

23 Apr 2020

Report Examines Maritime Digitalization in Japan

Image: Imarsat

A new study, ‘A quiet revolution - the maritime innovation ecosystem in Japan’, explores the commitments to Internet of Things (IoT)-based ship and crew management already made by corporate Japan, then goes on to offer unique insights into the country’s emerging start-up culture.The report, sponsored by Inmarsat is the first in a series of in-depth profiles into maritime technology and start-ups in specific countries. It builds on ‘Trade 2.0: How start-ups are driving the next generation of maritime trade’…

22 Apr 2020

Partners Studying Ammonia as a Marine Fuel

© rodho / Abobe Stock

Ammonia has been gaining attention in the maritime industry as owners and operators seek out new fuels to help their ships comply with emissions regulations and reduce their environmental footprint. A group of companies has come together to develop a better understanding of the practical realities involved in using ammonia as a fuel for ships, with a specific focus placed on addressing relevant technical and safety challenges.Ammonia is one of a number of options to be labeled "a marine fuel of the future".

17 Apr 2020

Crude Oil Held in Sea Storage Hits New Record

© Igor Yu. Groshev / Adobe Stock

Traders are storing an estimated record 160 million barrels of oil on ships - double the level from two weeks ago as they seek to tackle a glut of stocks created by a slide in global demand from the coronavirus, shipping sources say.Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia have agreed a record cut in output from May of 9.7 million barrels per day, or almost 10% of global supply, to help support prices and curb oversupply.At…

14 Apr 2020

Samsung Heavy Scores $209M Order for Two LNG-Fueled VLCCs

Image Credit: Samsung Heavy Industries

South Korea's Samsung Heavy Industries has signed a contract worth $209.2 million (KRW 253.6 billion) with a Bermudan ship owner to build two LNG-fueled VLCCs, which will be delivered by April 2022.The Very Large Crude Carriers will be equipped with S-Fugas, an LNG fueling system independently developed by SHI, that will see the vessels will comply with IMO 2020 which took effect early this year and reduce the emission of SOx by 99%, NOx by 85% and carbon dioxide by 25% compared to diesel fuel.The VLCC's will be equipped with SHI's Energy Saving Devices (ESDs)…

08 Apr 2020

Coronavirus Disrupts Supply of Ships and Demand -BIMCO

© Carabay / Adobe Stock

The coronavirus outbreak has affected all aspects of the shipping industry, lowering, if not wiping out, demand growth prospects for the year across all segments. The outbreak has also affected fleet development, says shipping association BIMCO.Contracting activity has fallen, demolition activity, which had been high, is now being limited by restrictions around the world and deliveries of new vessels are delayed.“The coronavirus has certainty replaced the IMO 2020 sulphur regulation as the talking point of the year.

08 Apr 2020

Tanker Rates Fall Ahead of OPEC+ Meeting

© Vladimir / Adobe Stock

Supertanker freight rates have fallen after last week's highs as industry participants await the outcome of a meeting of oil producers on Thursday before making further bookings, industry sources said.Freight rates could drop further if the Organization of the Petroleum Exporting Countries, Russia and other producers decide to cut output sharply, reducing transport and storage demand for oil, they said. They could jump again if producers fail to reach an agreement."From a freight standpoint…

07 Apr 2020

Total Charters LNG Dual-fuel VLCCs

(Photo: AET)

Malaysian shipowner AET said it signed a deal with Total's Chartering and Shipping Services SA for the time charter of two liquefied natural gas (LNG) dual-fuel very large crude carriers (VLCC). The two newbuilds, which are able to carry about 300,000 tons of crude oil each, are scheduled to be delivered to AET from the first quarter of 2022.The two newbuilds will be powered by LNG and will be among the most environmentally friendly VLCCs in the market. When in service, they will emit around 20% less CO2 greenhouse gases than conventional vessels; 85% less NOx and 99% less SOx.

02 Apr 2020

While Oil Prices Plummets, Tanker Rates Fly High

Source: BIMCO, Clarksons

If one ever needed proof that, no matter how dire the situation, there is always a silver lining, look no further than the crude tanker market, which has seen it day rates skyrocket in the face of a global pandemic that has effectively ground world commerce to a crawl.As is the case with other gravity defying business phenomena, geopolitics is a central factor, in this case a battle between Russia and Saudi Arabia to flood the world with oil in the face of declining demand and…

01 Apr 2020

Oil Storage at Sea Approaching Record Levels

© aerial-drone / Adobe Stock

Oil traders are storing as much as 80 million barrels of oil on tankers at sea, with further ships being sought as land storage sites fill up fast due to a global glut of stocks, shipping industry sources say.Traders rushed for storage after global oil demand collapsed by a third due to the coronavirus outbreak, and as top producers Saudi Arabia and Russia have refused to curb output so far, creating what is believed to be the biggest oil glut in history.The last time floating storage reached similar levels was in 2009…

30 Mar 2020

Oil Tanker Rates Double

© Vladamir / Adobe Stock

Supertanker freight rates are on the rise for a second time this month as producers, refiners and traders scramble to secure ships to transport crude or store a fast-growing global glut of oil, industry sources said.Freight rates for very large crude-oil carriers (VLCC) along the Middle East Gulf to China route were assessed at about $180,000 a day on Monday, up from some $125,000 on Friday and a weekly low of about $90,000 a day on Wednesday, according to several ship broking sources.Its difficult to say whether or not the rates will be sustained…

23 Mar 2020

Saudi Arabia's Tanker Power Play Could Backfire

© Carabay / Adobe Stock

Top exporter Saudi Arabia has chartered an armada of ships to flood the market with additional oil, but in the process has driven freight costs so high refiners are reluctant to take the shipments.That could leave the kingdom stuck with tens of millions of barrels in expensive ships at anchor when the coronavirus outbreak has destroyed oil demand and international prices have lost more than half their value compared with the start of the year.Following the failure to persuade…

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