World News
Increase for VLCC Rates
Charter rates for very large crude carriers (VLCCs) moving Middle East crude to Asia rose 1.9 percent Monday, the second-biggest increase so far this year, Bloomberg reports.
The rates for a Saudi Arabia-to-Japan voyage - a benchmark for the Middle East-Asia route - rose to 31.89 industry-standard Worldscale points, representing the fourth increase in a row.
The VLCC rates "continue to improve," with more ships being hired, according to Sam Margolin, an analyst at Dahlman Rose & Co. in New York.
Despite rising demand, the supply of ships remains high.
"Enquiry in the Middle East Gulf market has been steady this week, with Indian and Korean charterers showing particular interest," shipbroker Simpson, Spence & Young Ltd. said.
"Nonetheless, an abundance of available tonnage has persisted, allowing charterers to pick off less attractive vessels at cheap rates."
The capacity of the world's VLCC fleet is expected to increase 5.3 percent this year, while demand growth should outpace it at 5.9 percent, according to shipbroker Clarkson Plc.
Shipping billionaire John Fredriksen recently said he expects oil and fuel tankers to lead recovery in the shipping industry over the next 15 to 20 months, but that the market for product tankers will improve faster than the crude carrier market.
Teekay Marine Markets has predicted some increases in demand for crude tankers this year, but no strong recovery until 2014.
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 |
Popular Now More
-
Apr 30The new hire was previously director of marine fuel marketing at UET Marine in Houston. -
Apr 29The ships are accused of delivering cargo to ports under the control of Yemen's Houthi movement. -
Apr 28Failing to keep track of energy density variations could be costing shipping companies as much as $25/mt in fuel bills, Shipergy CEO Daniel Rose tells Ship & Bunker.