Join our crew and become one of the 104,470 members that receive our newsletter.

tanker vlcc supertanker ship shipping

Biggest Glut of Supertankers Since September, Day Rates Fall Below $10k

Bloomberg
Total Views: 3
January 22, 2013

Jan. 22 (Bloomberg) — The glut of supertankers competing for 2 million-barrel cargoes of Persian Gulf oil expanded to the highest in more than four months, driving down freight rates as demand for the ships weakens.

There are 22 percent more very large crude carriers for hire over the next 30 days than cargoes, according to the median estimate of seven shipbrokers and owners in a Bloomberg News survey today. That’s 2.5 percentage points more than last week, and the biggest excess since Sept. 5.

Demand is “very slow,” with only one of the tankers booked yesterday, RS Platou Markets AS, an Oslo-based investment bank, said in an e-mailed note today. Vessels booked two months ago are now returning to the Persian Gulf seeking employment, swelling supply, said Per Mansson, managing director of shipbroker Norocean Stockholm AB, who has worked in the industry for 31 years.

“December and January did not pick up as we thought,” Mansson said by phone from the city. “It’s going to be tough. We will work with a big overhang of vessels every month.”

Daily returns for tankers hauling 2 million barrels of crude to Japan from Saudi Arabia slumped 11 percent to $8,994, according to the London-based Baltic Exchange yesterday. That was the first time since Nov. 12 earnings were below $10,000.

– Rob Sheridan, Copyright 2013 Bloomberg.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
polygon icon polygon icon

Why Join the gCaptain Club?

Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.

Sign Up
close

JOIN OUR CREW

Maritime and offshore news trusted by our 104,470 members delivered daily straight to your inbox.

Join Our Crew

Join the 104,470 members that receive our newsletter.