World News
VLCC Booking Rates Up After Chinese Holiday
The booking rates for very large crude carriers (VLCCs) on the busy Saudi Arabia-to-Japan route rose 0.5 percent Monday to 31.75 Worldscale points, representing a partial recovery from an 11-session low on February 14, Bloomberg reports.
The route, a benchmark for trade between the Middle East and Asia, remained a money-loser for ship owners.
"Earnings have been quoted in negative territory for the past 17 trading days," Erik Nikolai Stavseth, an analyst at Oslo-based investment bank Arctic Securities ASA, said in a report.
"We do not think the situation will change notably near-term."
Daily losses for VLCCs on the route fell to $6,307 from $6,857 on February 15 as charters resumed operations in China after the Lunar New Year holiday last week.
The booking rate figures, based on data from the London-based Baltic Exchange, do not include adjustments for extra money made by carrying cargo on return trips or for slow steaming.
Slow steaming is likely to be particularly effective for saving money since bunker prices rose in nine of the past ten weeks.
Rates for the route have been largely up this year, but the current level is still down from the 31.89 Worldscale point position reached earlier this month.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 7.00 | 617.00 | 6.00 |
| Rotterdam | 455.00 | 8.00 | 619.50 | 4.00 |
| Houston | 467.00 | 4.50 | 625.00 | 2.50 |
| Fujairah | 495.00 | 6.00 | 712.50 | 1.50 |
| Global 20 Ports Average | 524.50 | 4.50 | 710.50 | 4.00 |
| Global 4 Ports Average | 479.50 | 6.50 | 643.50 | 3.50 |
| Global Average Bunker Price | 570.50 | 2.00 | 747.50 | 5.50 |
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