World News
Vitol Chartering Five Older Tankers for Floating Storage
International oil trader Vitol Group has chartered five older tankers for longer-term floating storage, TankTerminals.com reports.
All five older ore bulk oil carriers (OBO) are reportedly older than 15 years and are estimated to have a 90,000-tonne capacity, with four typically used to transport refined products, and one used for dirty products.
The ships, which reportedly include SKS Tana, SKS Tyne, SKS Trent, SKS Tagus and the SKS Tweed, are said to be being chartered for around $17,500 per day, a lower rate than a newer LR2 tanker.
It was reported earlier this year that some players no longer considered floating storage financially viable, but the use of cheaper and smaller tankers has reportedly been a strategy for traders who continue to store crude at sea.
Ship & Bunker first reported early this year that a number of traders were hiring older supertankers to use as floating storage, a list which includes Vitol, Trafigura, and Shell.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 501.00 | 6.00 | 598.50 | 7.00 |
| Rotterdam | 442.00 | 4.00 | 590.50 | 1.00 |
| Houston | 445.00 | 7.50 | 591.00 | 4.50 |
| Fujairah | 493.00 | 9.00 | 708.50 | 10.50 |
| Global 20 Ports Average | 518.50 | 3.50 | 695.50 | 3.00 |
| Global 4 Ports Average | 470.00 | 4.50 | 622.00 | 5.00 |
| Global Average Bunker Price | 561.50 | 3.00 | 745.50 | 1.50 |
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