World News
Scorpio Tankers Continues its Newbuilding Order Spree
Scorpio Tankers Inc. [NYSE: SNG] (Scorpio) today announced it has continued its spree of newbuilding orders with agreements for six more 114,000 dwt LR2 product tankers with South Korean shipyards at an approximate cost of $50 million each.
The orders mean the product tanker operator is now set to double its fleet by the end of 2014.
Four of the vessels will be constructed at Hyundai Samho Heavy Industries Co., Ltd. (HSHI) and are in addition to the order for 2 similar LR2 newbuildings placed at the shipyard earlier in the month.
The two other LR2 product tankers will be built at Daewoo Shipbuilding and Marine Engineering Co., Ltd. (DSME).
All six newbuildings are scheduled to be delivered within 2014, and come with fixed-price options for the construction of additional LR2 vessels.
Scorpio also announced that yesterday, March 25, 2013, it took delivery of STI Emerald, the seventh MR product tanker of its recent newbuilding program.
Emerald immediately began a time charter for up to 120 days at $19,500 per day plus an adjustment based on the fuel consumption, it said.
With today's orders, plus yesterday's delivery, it means the company currently has 33 newbuilding product tankers on order with Hyundai Mipo Dockyard Co. Ltd., SPP Shipbuilding Co. Ltd., HSHI, and DSME.
One of those tankers is expected for delivery by next month, with the rest scheduled for delivery in 2014.
Shipping billionaire John Fredriksen in January predicted a product tanker lead recovery of the shipping industry over next 15 to 20 months.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| New York | 485.50 | 10.00 | 673.50 | 2.00 |
| 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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