World News
VLCC Tanker Speeds Hit Three-Year High Since COVID-19 Oil Shock
The speed of very large crude carriers (VLCCs) has risen to the highest level in more than three years in 2020 as the COVID-19 pandemic and discord within the OPEC+ coalition delivered oversupply in oil markets.
The average speed of VLCCs on ballast was at 12.91 knots in April, according to data from marine intelligence company VesselsValue, the most since January 2017 and up from a recent low of 11.43 knots in June. The average has since declined slightly to 12.81 knots so far this month.
The rise will deliver an increase in bunker demand from the tankers, as the higher speeds come with reduced fuel efficiency.
The increase in speeds will reflect high freight rates; the rates were already climbing towards the end of last year, and have since jumped even further with tankers now in high demand to cope with the current abundance of oil.
The average speed of laden VLCCs has been more unresponsive, in a range between 11.92 and 12.21 knots over the past year, and is likely to be held back by some vessels .
Tankers have been one of the few high-performing segments of the shipping industry since the outbreak of COVID-19, with most of the rest of the industry experiencing a slump in demand.
About Jack Jordan
Jack Jordan is the Managing Editor of Ship & Bunker, the world’s most read marine fuel-focused publication.
He is an experienced financial editor and reporter with a first-class degree in Arabic and Russian, a postgraduate diploma in newspaper journalism and several years' history of covering the oil and shipping industries and capital markets.
Jack is based in London, UK.
About Ship & Bunker
Ship & Bunker is the world's most read publication focused on the marine fuel markets. Completely independent, it is the leading industry authority providing comprehensive daily news, exclusive in-depth features and analysis, along with daily & historical bunker price indications.
To contact the editor responsible for this story email us at editor@shipandbunker.com
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 556.50 | 9.00 | 685.00 | 6.50 |
| Rotterdam | 506.00 | 6.00 | 665.00 | 11.00 |
| Houston | 552.50 | 0.50 | 682.00 | 4.00 |
| Fujairah | 548.00 | 7.50 | 750.00 | 3.00 |
| Global 20 Ports Average | 583.50 | 4.00 | 762.50 | 2.50 |
| Global 4 Ports Average | 546.50 | 4.50 | 697.50 | 2.50 |
| Global Average Bunker Price | 632.50 | 2.00 | 811.00 | 1.50 |
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