A surplus of supertankers competing to haul Middle East oil shrank for a second week as owners cut ship speeds and the flow of cargoes from the world's biggest crude-loading region accelerated. There are 16 per cent more very large crude carriers competing for business over the next 30 days than there are cargoes, according to the median estimate of six owners and brokers surveyed by Bloomberg News. The excess was 23 per cent on July 22.
Frontline Ltd, the world's largest operator of supertankers, said on July 23 that owners were reducing speeds and rejecting cargoes to counteract increased fuel prices and slumping returns. When ships travel at lower speeds, fewer vessels are available to collect consignments.
The supply of ships for August's first 10 days was diminished by 'busy activity', said Imarex ASA, an Oslo-based freight derivatives broker. More vessels became available for loading in the second 10 days of the month, Imarex said.
Rental income from shipping Saudi Arabian crude to Japan, the industry's benchmark route, climbed 5.3 per cent to US$17,453 a day on Tuesday, after slumping 23 per cent last week, according to the London-based Baltic Exchange. In industry-standard Worldscale terms, rates advanced 1.2 per cent to 56.56 points.
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.
The Baltic Dirty Tanker Index, a wider measure of crude oil-transportation costs, fell 1.7 per cent to 844 points on Tuesday, according to the exchange.
Frontline Ltd, the world's largest operator of supertankers, said on July 23 that owners were reducing speeds and rejecting cargoes to counteract increased fuel prices and slumping returns. When ships travel at lower speeds, fewer vessels are available to collect consignments.
The supply of ships for August's first 10 days was diminished by 'busy activity', said Imarex ASA, an Oslo-based freight derivatives broker. More vessels became available for loading in the second 10 days of the month, Imarex said.
Rental income from shipping Saudi Arabian crude to Japan, the industry's benchmark route, climbed 5.3 per cent to US$17,453 a day on Tuesday, after slumping 23 per cent last week, according to the London-based Baltic Exchange. In industry-standard Worldscale terms, rates advanced 1.2 per cent to 56.56 points.
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.
The Baltic Dirty Tanker Index, a wider measure of crude oil-transportation costs, fell 1.7 per cent to 844 points on Tuesday, according to the exchange.