Most single-hull tankers “East of Suez”

According to Fred Olsen group tanker operator First Olsen ltd (FOL) the development of a two-tier market strengthened during the third quarter and most single hull vessels are now trading East of Suez. The company notes: “The result being that the rate level in this market is clearly lower than in other markets. The market level on eastern trades was about US$30,000 per day according to the Clarkson ship broking firm, while for instance the level on trades between West Africa and the USA was just over US$ 50,000 per day.”The remarks come in the company’s nine-months report which showed a marked reduction in earnings. For the first nine months of the year, freight revenue US$12.9m, down from US$63.4m while EBITDA was US$8.3m, against US$49.5m in the equivalent period last year.FOL says in statement: “An upturn in the tanker market early in the quarter was soon replaced by a clear downward trend throughout the period. By the beginning of the fourth quarter, however, the market has again shown a stronger trend and recent USA oil stock reports may indicate a stronger market until year end.”