Second Wave of Floating Storage Triggered by Ailing Oil Market
A stalled global economic recovery from the coronavirus pandemic is leading to a fresh build-up of global oil supplies, pushing traders including Trafigura to book tankers to store millions of barrels of crude oil and refined fuels at sea again.The use of so-called floating storage onboard tankers comes as traditional onshore storage remains close to capacity as supplies outpace demand.Trading house Trafigura has chartered at least five of the largest tankers each capable of storing 2 million barrels of oil…
Oil Tanker Rates Double
Supertanker freight rates are on the rise for a second time this month as producers, refiners and traders scramble to secure ships to transport crude or store a fast-growing global glut of oil, industry sources said.Freight rates for very large crude-oil carriers (VLCC) along the Middle East Gulf to China route were assessed at about $180,000 a day on Monday, up from some $125,000 on Friday and a weekly low of about $90,000 a day on Wednesday, according to several ship broking sources.Its difficult to say whether or not the rates will be sustained…
BIMCO Revises 2020 Forecast
The coronavirus pandemic is impacting global shipping demand for 2020 negatively. The speed of the virus spread makes it difficult to assess the full consequences. Nevertheless, we see a need to update our 2020 forecast to make some of this massive uncertainty tangible.What is going on in addition to the coronavirus pandemic?Geopolitical tensions that made the OPEC+ alliance break down, has subsequently made the crude oil tanker spot freight market erupt. The events that followed the breakdown - and those that are likely to follow…
Guangzhou Shipyard Bags Order for Seven Tankers from Cosco Shipping
Cosco Shipping Energy Transportation (CSET) has placed an order for seven more ships at compatriot Guangzhou Shipyard International Company Limited (GSI), owned by CSSC Offshore & Marine Engineering Company Limited. The order will include two 64,900 dwt crude oil tankers, two 109,900 dwt LR2 vessels and three 114,000 dwt crude tankers, totaling in an investment worth approximately USD 323 million (RMB 2.14 billion.). Expected delivery dates for the two 64,900 dwt panamax crude tankers are on or before 29 February 2020 and 31 May 2020, respectively.
Bahri Showcases Latest Technologies and Achievements
Global transportation and logistics company Bahri said it participated in the General Directorate of Border Guards’ celebrations of the 87th National Day and the World Maritime Day. The celebrations included a range of events and special programs for this patriotic occasion, which coincides with the Kingdom’s nomination for membership of the International Maritime Organization’s (IMO) Executive Council. During the program that was organized for the IMO Secretary General, Bahri Acting CEO, Ali Al-Harbi received IMO Secretary-General, H.E. Adm.
HMM Orders New Carriers
South Korea’s largest ocean carrier Hyundai Merchant Marine (HMM) will invest USD 417.61 million in five new very large crude oil carriers (VLCCs), Reuters reported quoting company sources. "HMM will invest 470 billion South Korean won (U.S. $418 million) in new facilities for the construction of five, 300,000 deadweight ton (DWT) VLCCs with Daewoo Shipbuilding & Marine Engineering (DSME), with an option for five more," said company sources. HMM will acquire two 11,000-TEU containerships from Hanjin Heavy Industries & Construction’s Subic Shipyard.
Tsakos Orders Tankers at Sungdong
South Korean shipyard Sungdong Shipbuilding & Marine Engineering Co. (Sungdong) has won an order from Greece’s Tsakos Energy Navigation (TEN) for two 74,000 deadweight tonnage (DWT) crude-oil carriers with an option for two more. TEN has already ordered three tankers from Sungdong. The total value of the contract for the four LR1 tankers could reach up to USD 170 million. Delivery of the firm ship is due in the first half of 2018. Tsakos’s commitment is a massive boost for Sungdong after a tough period of instability and restructuring where the yard skirted with closure.
Tanker Shipping: Signs of Weakness are Appearing, But Still Money to be Made
Supported by slow fleet growth and ongoing positive refinery margins, VLCC earnings in Q1-2016 were up from a year ago, but down from Q4-2015 as we expected at $58,367 per day for VLCC (+5.7% year on year). For the minor crude oil carriers, rates were down from Q1-2015 and Q4-2015. Rates in Q1-2016 were $37,914 per day for suezmax (-25% year on year), $30,197 per day for aframax (-24% year on year). For the oil product tankers, Q3-2015 stands out as the peak quarter of the current cycle. Earnings in Q1-2016 were the lowest since Q3-2014 when the markets started to rise.
BIMCO: Tanker Market is Full of Surprises
Some time ago, BIMCO expected the first signs of a solid recovery in the oil tanker industry to appear in the product tanker market. However, like other soon-to-arrive recoveries, the waiting time tends to increase as we approach the expected tipping point. This time around, global refinery throughput started the year strongly but entered a still running soft patch in May, high volumes but shorter hauls out of the U.S. Gulf, and the steady inflow of new ships were part of the cocktail that prevented freight rates from taking off big time.
U.S. Shipyard Delivers Tankship to Crowley
Aker Philadelphia Shipyard delivers its first Veteran-class MT-46 product tanker to Crowley Maritime Corp. This is the thirteenth product tanker that the shipyard has completed and the seventeenth vessel overall. The product tankers are 600 feet long and have a cargo capacity of 46,000 dwt. The ship is named the Pennsylvania and is the first vessel that AKPS has delivered to Crowley. As stated in AKPS’s release on 21 August, 2012, Crowley will also take delivery of the next product tanker, Hull 018, when it is completed in February 2013.
Wärtsilä to Supply Main Engines for Kuwait Oil Tanker
Wärtsilä's RT-flex common rail engine technology provides environmental benefits including low fuel consumption and reductions in exhaust emissions. The engine waste heat is utilized to produce onboard electricity. These features help maintaining and operating seaborne transportation in more economical and sustainable ways. Wärtsilä will supply the main engines for a series of vessels being built for Kuwait Oil Tanker Co. (KOTC), a Subsidiary of Kuwait Petroleum Corporation. Four VLCCs (Very Large Crude Oil Carriers)…
Wärtsilä Main Engines Ordered for Nine Kuwait Oil Tankships
Wärtsilä to supply main engines for a series of 9 large vessels being built by Daewoo for Kuwait Oil Tanker Co. Four VLCCs (Very Large Crude Oil Carriers), one Aframax tanker and four medium-range tankers are being built at the Daewoo Shipbuilding & Marine Engineering (DSME) shipyard in South Korea. The VLCCs will be fitted with 7-cylinder Wärtsilä RT-flex 82T engines and a Waste Heat Recovery System, which utilizes exhaust gas energy to generate steam which is used to operate a turbo generator that produces ship's electricity supply.
Signed Contracts for Acquisition of Two Resale Supramax Bulk Carriers
The Shipping Corporation of India Ltd. (SCI) has signed contracts for acquisition of two resale Supramax bulk carriers with M/s Grand Yard. Investments Ltd., China on 15th April, 2011. These vessels have been acquired through a competitive global tendering process and SCI has selected the vessels of M/s Grand Yard Investments based on the technical suitability and commercial competitiveness. These vessels are presently under construction at M/s Guoyu Shipyard, China which is under the same group of M/s Grand Yard Investments Ltd.
Spectec Supplies Tanterska Plovidba
Tankerska Plovidba has eight new buildings on order with deliveries in 2010 and 2011. Recently, two separate agreements have been made with SpecTec Limited, for the supply of AMOS software and databases for two new buildings in Jiangsu Eastern Shipyard PRC and two new buildings in SPP Shipyard Korea. Two leading vessels will be delivered in January 2010. Planned Maintenance and Purchasing across the fleet of Tankerska Plovidba has been powered by AMOS software since June 1997.