The rates for hiring medium to long-range tankers on Asian routes to transport oil products including diesel may extend their decline as more ships become available for charter.
The rate of shipping a 55,000 metric tonne cargo to Japan from the Middle East fell for an eighth day, losing 0.8 per cent to Worldscale 189.04 on Aug 10, according to the London-based Baltic Exchange. It's the lowest in more than a month. The cost translates to US$33.48 a tonne, according to Bloomberg data.
Charterers are getting 'cheaper numbers now, which is of little surprise given the inactivity', said London-based EA.
Gibson Shipbrokers Ltd said in its weekly report, 'Arabian Gulf to Japan has been deathly quiet. The tightness in north Asia is also easing, which is freeing more tonnage, hence, sentiment is not as firm as it has been.' There were 15 medium to long-range tankers scheduled to arrive last week here, with another seven slated this week, according to Bloomberg data. The vessels are able to carry as much as 1.3 million tonnes of cargo. The National Day public holiday here contributed to the dearth in cargo movement last week, shipbrokers said.
The rate for moving 30,000 tonnes of oil products to Japan from Singapore slumped 3.4 per cent last week. It fell 0.4 per cent to Worldscale 224.17 on Aug 10, according to the Baltic Exchange. The rate translates to US$20.03 for a tonne of product, according to Bloomberg data.
The cost of shipping 75,000 tonnes of products to Japan from the Persian Gulf was at Worldscale 149.17 on Aug 10, up 0.1 per cent from a day earlier, the Baltic Exchange data showed.
In Japan, oil product inventories fell 0.7 per cent to 13.8 million kilolitres (117.6 million barrels), the Petroleum Association of Japan said on Aug 8. Still, naphtha inventories rose 3.95 per cent to 1.77 million kilolitres. Naphtha, distilled from crude oil, is a raw material used to make chemicals, plastics and gasoline. Inventories for both gasoil and kerosene also increased.
A long-range 1 tanker, also known as LR1, can carry 50,000 tonnes to 80,000 tonnes of oil products and is able to pass through the Panama Canal. A long-range 2 tanker, or LR2, can transport 80,000 tonnes to 160,000 tonnes of products while a medium-range tanker can carry 25,000 tonnes to 45,000 tonnes of fuel.
Worldscale points are a percentage of a nominal rate, or flat rate, for a specific route. Flat rates, quoted in US dollars a tonne, are revised annually by the Worldscale Association in London to reflect changing fuel costs, port tariffs and exchange rates.
The rate of shipping 80,000 tonnes of crude oil on so-called aframax tankers to Singapore from Kuwait fell for the first time in four days. It dropped 0.9 per cent to Worldscale 130.96 on Aug 10, according to the Baltic Exchange.
The rate of shipping a 55,000 metric tonne cargo to Japan from the Middle East fell for an eighth day, losing 0.8 per cent to Worldscale 189.04 on Aug 10, according to the London-based Baltic Exchange. It's the lowest in more than a month. The cost translates to US$33.48 a tonne, according to Bloomberg data.
Charterers are getting 'cheaper numbers now, which is of little surprise given the inactivity', said London-based EA.
Gibson Shipbrokers Ltd said in its weekly report, 'Arabian Gulf to Japan has been deathly quiet. The tightness in north Asia is also easing, which is freeing more tonnage, hence, sentiment is not as firm as it has been.' There were 15 medium to long-range tankers scheduled to arrive last week here, with another seven slated this week, according to Bloomberg data. The vessels are able to carry as much as 1.3 million tonnes of cargo. The National Day public holiday here contributed to the dearth in cargo movement last week, shipbrokers said.
The rate for moving 30,000 tonnes of oil products to Japan from Singapore slumped 3.4 per cent last week. It fell 0.4 per cent to Worldscale 224.17 on Aug 10, according to the Baltic Exchange. The rate translates to US$20.03 for a tonne of product, according to Bloomberg data.
The cost of shipping 75,000 tonnes of products to Japan from the Persian Gulf was at Worldscale 149.17 on Aug 10, up 0.1 per cent from a day earlier, the Baltic Exchange data showed.
In Japan, oil product inventories fell 0.7 per cent to 13.8 million kilolitres (117.6 million barrels), the Petroleum Association of Japan said on Aug 8. Still, naphtha inventories rose 3.95 per cent to 1.77 million kilolitres. Naphtha, distilled from crude oil, is a raw material used to make chemicals, plastics and gasoline. Inventories for both gasoil and kerosene also increased.
A long-range 1 tanker, also known as LR1, can carry 50,000 tonnes to 80,000 tonnes of oil products and is able to pass through the Panama Canal. A long-range 2 tanker, or LR2, can transport 80,000 tonnes to 160,000 tonnes of products while a medium-range tanker can carry 25,000 tonnes to 45,000 tonnes of fuel.
Worldscale points are a percentage of a nominal rate, or flat rate, for a specific route. Flat rates, quoted in US dollars a tonne, are revised annually by the Worldscale Association in London to reflect changing fuel costs, port tariffs and exchange rates.
The rate of shipping 80,000 tonnes of crude oil on so-called aframax tankers to Singapore from Kuwait fell for the first time in four days. It dropped 0.9 per cent to Worldscale 130.96 on Aug 10, according to the Baltic Exchange.