World News
VLCCs Steaming at Their Fastest Since 2012
Very Large Crude Carriers (VLCCs) are sailing at their fastest speeds since 2012 partly as a result of lower bunker prices, Bloomberg reports.
According to the report, joint forces of lower bunker prices and higher VLCC freight rates have made it more economical for VLCC operators to speed up.
"This can be attributed to the simultaneous decrease in the oil prices and the consequent reduction in bunker prices but also due to the increase in rates caused by the Chinese re-stocking cut-price crude," said Kaizad Doctor, Analytics Director for VesselsValue Ltd. (VesselsValue).
The dramatic drop in oil prices over recent months has brought bunker prices down, stimulated oil trading, and raised demand for VLCCs for cargo delivery and floating storage.
This month, VLCCs sailed at an average of 12.57 knots, according to data by research company Platou Economic Research (Platou).
According to VesselsValue, this is the fastest average for VLCCs since 2012.
Platou said steaming speeds for laden VLCC voyages between February 14 and 16 were 6.7 percent faster than average speeds between November 14 and 16.
Speeds for ballast legs were 10 percent higher, at 13.3 knots, in the February period versus the November period.
In February, VLCC rates were said to have begun to fall from January highs.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 655.50 | 2.00 | 808.50 | 4.50 |
| Rotterdam | 619.00 | 0.00 | 789.00 | 8.00 |
| Houston | 628.50 | 7.50 | 812.50 | 1.50 |
| Fujairah | 653.50 | 4.50 | 900.00 | 2.50 |
| Global 20 Ports Average | 672.00 | 0.50 | 885.00 | 7.00 |
| Global 4 Ports Average | 639.00 | 2.50 | 827.50 | 2.00 |
| Global Average Bunker Price | 727.50 | 1.50 | 933.50 | 5.00 |
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