Tuesday, December 14, 2010
Supertanker Market Has 30 to 40 Spare Vessels, DnB NOR Says
DnB NOR Markets analysts Henrik With and Glenn Lodden comment in an e-mailed report today on supply and demand for supertankers to load 2 million-barrel cargoes of Middle East crude oil.
Rental income from very large crude carriers, or VLCCs, shipping Saudi Arabian crude to Japan, the industry’s benchmark route, fell 7 percent to $10,232 a day yesterday, according to the London-based Baltic Exchange.
“With approximately 105 VLCC cargoes now being completed for December-loading in the Middle East, this month’s lifting program should for all practical purposes be close to its end. Although January stems could be seen towards the weekend, we do not foresee any surge in fresh demand this week.” Shipbrokers sometimes refer to cargoes as stems.
“As a result of newbuild deliveries and a lack of floating storage impetus, there appears to be an overhang of 30-40 double-hull VLCCs. Charterers are thus in a very strong bargaining position.”
“VLCC earnings should stay poor, and could possibly drop further this week. Asset values continue to decline, negatively impacting” the net asset values of publicly traded shipowners.
To contact the reporter on this story: Alaric Nightingale in London at Anightingal1@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at firstname.lastname@example.org.
Posted by Crude Oil Daily at 12:37 PM
Subscribe to: Post Comments (Atom)
Post a Comment