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Friday, September 21, 2018

Charterers take opportunity to secure cheap modern tankers on period contracts

Period chartering activity when analysing contracts of 6 months and above , is at about the same level as in 2001, when it was at a record high, but the rates this year are naturally much lower than the rates in 2001.

By just making a very crude comparison, we see that the average rate obtained for all ships in 2001 was USD 23,452 per day whereas the average rate obtained so far in 2002 was USD 17,126 or 27% lower.

The average age of the tankers taken on period contracts was less this year: 7.4 years compared to 8.5 years in 2001.

The average size of the tankers taken this year was 124,890 dwt compared to 107,041 dwt in 2001. This is because 32 VLCCs have been taken on period contracts so far in 2002 compared to the same number for the whole of 2001. We have also recorded 26 contracts for tankers 100-199,999 dwt, 30 contracts for tankers 50-99,999 dwt and 43 contracts for tankers 10-49,999 dwt.

The average length of the period has, however, been shorter in 2002: 1.6 years compared to 2.4 years in 2001.

The most active period charterers have been ExxonMobil (9 contracts/2.702 mil dwt recorded, average age 4 years), Navion (10 contracts/1.316 mil dwt, average age 1 year), Petrobras (22 contracts/2.712 mil, average age 7 years) and Vitol (7 contracts/0.305 mil, average age 11.3 years).

The trends and contract details can be viewed here.