Middle East-Asia supertanker rates slide 0.8 per cent past week
The cost of delivering Middle East crude to Asia, the world's busiest route for supertankers, fell for a second day last Friday as Chinese holidays tempered demand for ships.
Charter rates for the very large crude carriers, or VLCCs, sailing the Saudi Arabia to Japan route fell 0.8 per cent to 38.33 Worldscale points, according to the London-based Baltic Exchange. Returns from the voyage dropped 1.1 per cent to US$13,379 a day, a fourth consecutive decline.
Vessel demand 'stayed moderate at best' because of Chinese holidays, London-based EA Gibson Shipbrokers Ltd said in a report last Friday. Weather- related delays and increased demand may buoy rates next week, it said.
Owners are contending with a supertanker fleet that has expanded 4.8 per cent this year and global oil production that is down 4.1 per cent over the same period. That has caused income after fuel costs to drop below what owners need to pay crew, insurance and other running costs four times already this year, according to data from the Baltic Exchange and London-based Drewry Shipping Consultants Ltd.
Ship owners 'should perhaps be rather happy' that rates have stayed little- changed last week given the Chinese holidays, Oslo-based PF Bassoe A/S said in a report.
'Despite slow activity, they have been able to hold the market steady,' Bassoe said. 'The number of deals done for October - about 60 - is far below the level normally seen at this time of the month' and may mean more bookings this week.
There are now 523 VLCCs in service, compared with 499 at the start of the year, according to Lloyd's Register-Fairplay data on Bloomberg. The Organization of Petroleum Exporting Countries (Opec) has trimmed output to 28.4 million barrels a day from 29.7 million.
Worldscale points are a percentage of a nominal rate, or flat rate, for more than 320,000 specific routes. Flat rates for every voyage, quoted in US dollars a ton, are revised annually by the Worldscale Association in London to reflect changing fuel costs, port tariffs and exchange rates.
Each flat rate assessment gives owners and oil companies a starting point for negotiating hire rates without having to calculate the value of each deal from scratch.
Income from one million barrel carrying suezmax tankers added 0.5 per cent to US$12,690 a day. Returns from aframaxes jumped 40 per cent to US$3,635 a day.
Charter rates for the very large crude carriers, or VLCCs, sailing the Saudi Arabia to Japan route fell 0.8 per cent to 38.33 Worldscale points, according to the London-based Baltic Exchange. Returns from the voyage dropped 1.1 per cent to US$13,379 a day, a fourth consecutive decline.
Vessel demand 'stayed moderate at best' because of Chinese holidays, London-based EA Gibson Shipbrokers Ltd said in a report last Friday. Weather- related delays and increased demand may buoy rates next week, it said.
Owners are contending with a supertanker fleet that has expanded 4.8 per cent this year and global oil production that is down 4.1 per cent over the same period. That has caused income after fuel costs to drop below what owners need to pay crew, insurance and other running costs four times already this year, according to data from the Baltic Exchange and London-based Drewry Shipping Consultants Ltd.
Ship owners 'should perhaps be rather happy' that rates have stayed little- changed last week given the Chinese holidays, Oslo-based PF Bassoe A/S said in a report.
'Despite slow activity, they have been able to hold the market steady,' Bassoe said. 'The number of deals done for October - about 60 - is far below the level normally seen at this time of the month' and may mean more bookings this week.
There are now 523 VLCCs in service, compared with 499 at the start of the year, according to Lloyd's Register-Fairplay data on Bloomberg. The Organization of Petroleum Exporting Countries (Opec) has trimmed output to 28.4 million barrels a day from 29.7 million.
Worldscale points are a percentage of a nominal rate, or flat rate, for more than 320,000 specific routes. Flat rates for every voyage, quoted in US dollars a ton, are revised annually by the Worldscale Association in London to reflect changing fuel costs, port tariffs and exchange rates.
Each flat rate assessment gives owners and oil companies a starting point for negotiating hire rates without having to calculate the value of each deal from scratch.
Income from one million barrel carrying suezmax tankers added 0.5 per cent to US$12,690 a day. Returns from aframaxes jumped 40 per cent to US$3,635 a day.