The cost of delivering Middle East crude oil to Asia, the world’s busiest route for supertankers, climbed for the first time in 10 sessions as demand for the vessels strengthened.
Charter rates for very large crude carriers, or VLCCs, on the industry’s benchmark Saudi Arabia to Japan route advanced 5.4 percent to 58.24 Worldscale points, according to the Baltic Exchange in London today.
There was “a slight pick up in activity” that bolstered rates, London based E.A. Gibson Shipbrokers Ltd said in an e mailed report today.
Rental income from the Saudi Arabia to Japan route jumped 25 percent to $15,019 a day, according to the exchange. Frontline Ltd, the world’s largest supertanker operator, requires $31,300 a day to break even on the vessels once debt repayments are taken into account.
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 metric 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 that also spans smaller ships than VLCCs, added 2 percent to 959 points, according to the exchange.
The gauge has jumped 14 percent since November 26 for its biggest weekly gain since the week ending March 19.
Charter rates for very large crude carriers, or VLCCs, on the industry’s benchmark Saudi Arabia to Japan route advanced 5.4 percent to 58.24 Worldscale points, according to the Baltic Exchange in London today.
There was “a slight pick up in activity” that bolstered rates, London based E.A. Gibson Shipbrokers Ltd said in an e mailed report today.
Rental income from the Saudi Arabia to Japan route jumped 25 percent to $15,019 a day, according to the exchange. Frontline Ltd, the world’s largest supertanker operator, requires $31,300 a day to break even on the vessels once debt repayments are taken into account.
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 metric 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 that also spans smaller ships than VLCCs, added 2 percent to 959 points, according to the exchange.
The gauge has jumped 14 percent since November 26 for its biggest weekly gain since the week ending March 19.