Supertanker charter rates up 6.3%
The cost of delivering Middle East crude oil to Asia, the world's busiest route for supertankers, had the biggest weekly gain in eight as demand strengthened, Bloomberg reports.
Charter rates for very large crude carriers, or VLCCs, on the industry's benchmark Saudi Arabia-to-Japan route, gained 6.3 per cent to 55.48 Worldscale points, according to the Baltic Exchange in London. Worldscale points are a percentage of a nominal rate or flat rate for more than 320,000 specific routes.
That was the largest weekly gain since the period ending April 8. Rental income, which varies with changes in fuel costs, jumped 44 per cent to US$10,827 a day.
Charter rates may 'temporarily' strengthen this week after demand gained over the past several days, London-based EA Gibson Shipbrokers Ltd, said in a report released last Friday.
The transportation capacity of the fleet will increase 7.4 per cent to 172.8 million deadweight tons this year, more than double the 3.1 per cent climb in demand to 128.4 million tons, according to the research unit of Clarkson plc, the world's biggest shipbroker.
Owners are awaiting additional cargo demand within the next several days that may be causing charter rates to strengthen, Frode Morkedal, an analyst at RS Platou Markets AS in Oslo, said in a report released last Friday.
Separately, owners of capesize vessels used to haul iron ore and coal have cut sailing speeds by 20 per cent since September 2008 to prop up rates depressed by overcapacity, shipbroker Lorentzen & Stemoco AS said.
A study of 90,000 voyages of bulk carriers able to carry more than 80,000 deadweight tons found that average speeds slowed to 10.4 knots from 13 knots, and added an extra two days to each voyage, analyst Nicolai Hansteen wrote in a report released on Friday.
'With fewer vessels being available for charter, the market will be firming up faster due to increased demand for tonnage,' Mr Hansteen wrote.
One in five capesize vessels is unavailable for rent because of decreased productivity, according to Lorentzen & Stemoco, based in Oslo.
The global fleet of capesize vessels is just over 1,200, including 108 new ships that began trading in 2011, according to data from Clarkson Research Services Ltd, a unit of Clarkson plc, the world's biggest shipbroker.
Hire costs for capesize ships have fallen 41 per cent this year to US$11,773 a day, according to data from the Baltic Exchange in London. That's US$400 more than the operating cost for a vessel, including crew and insurance and excluding fuel costs, according to estimates provided by the London office of Moore Stephens International, an accounting company.
The fleet has grown by 20 per cent this year, outpacing demand for dry bulk commodities shipments that are forecast to rise 4 per cent, Clarkson estimates.
Charter rates for very large crude carriers, or VLCCs, on the industry's benchmark Saudi Arabia-to-Japan route, gained 6.3 per cent to 55.48 Worldscale points, according to the Baltic Exchange in London. Worldscale points are a percentage of a nominal rate or flat rate for more than 320,000 specific routes.
That was the largest weekly gain since the period ending April 8. Rental income, which varies with changes in fuel costs, jumped 44 per cent to US$10,827 a day.
Charter rates may 'temporarily' strengthen this week after demand gained over the past several days, London-based EA Gibson Shipbrokers Ltd, said in a report released last Friday.
The transportation capacity of the fleet will increase 7.4 per cent to 172.8 million deadweight tons this year, more than double the 3.1 per cent climb in demand to 128.4 million tons, according to the research unit of Clarkson plc, the world's biggest shipbroker.
Owners are awaiting additional cargo demand within the next several days that may be causing charter rates to strengthen, Frode Morkedal, an analyst at RS Platou Markets AS in Oslo, said in a report released last Friday.
Separately, owners of capesize vessels used to haul iron ore and coal have cut sailing speeds by 20 per cent since September 2008 to prop up rates depressed by overcapacity, shipbroker Lorentzen & Stemoco AS said.
A study of 90,000 voyages of bulk carriers able to carry more than 80,000 deadweight tons found that average speeds slowed to 10.4 knots from 13 knots, and added an extra two days to each voyage, analyst Nicolai Hansteen wrote in a report released on Friday.
'With fewer vessels being available for charter, the market will be firming up faster due to increased demand for tonnage,' Mr Hansteen wrote.
One in five capesize vessels is unavailable for rent because of decreased productivity, according to Lorentzen & Stemoco, based in Oslo.
The global fleet of capesize vessels is just over 1,200, including 108 new ships that began trading in 2011, according to data from Clarkson Research Services Ltd, a unit of Clarkson plc, the world's biggest shipbroker.
Hire costs for capesize ships have fallen 41 per cent this year to US$11,773 a day, according to data from the Baltic Exchange in London. That's US$400 more than the operating cost for a vessel, including crew and insurance and excluding fuel costs, according to estimates provided by the London office of Moore Stephens International, an accounting company.
The fleet has grown by 20 per cent this year, outpacing demand for dry bulk commodities shipments that are forecast to rise 4 per cent, Clarkson estimates.