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Thursday, January 18, 2018

Period chartering halved in 2003

INTERTANKO has recorded 90 period contracts of six months and longer in the period January-October 2003 compared to 211 for the whole of 2002. In general, the average age of the time-chartered tankers so far in 2003 has increased from 7.3 years in 2002 to 8.2 years, the average rates have risen by almost USD 2,000 to just over USD 18,013 per day, the average period has increased slightly from 1.9 to 2.0 years and the average size of tanker has increased by some 4,000 dwt to 115,642 dwt.

In comparison, the year 2001 was a record year for period chartering with some 219 contracts signed at an average rate of USD 23,437, an average period of 2.4 years and an average size of 107,041 dwt.

We realise that in calculating averages on the number of period contracts for all segments we to some extent are mixing apples and pears, but the figures still give some indication of the activity and the levels.

The four most active period charters were Petrobras with 11 contracts (average 136,380 dwt) PDV Marine 7 contracts (average 108,941 dwt), ExxonMobil 5 contracts (average 132,350 dwt), and ST Shipping 4 contracts (average 67,982 dwt). Altogether 50 charterers were recorded taking tankers for 6 months and longer of which 29 signed one contract, 12 two and 4 three contracts. We have only recorded one contract for BP, which announced earlier this year that it intends to control directly a greater proportion of the tankers used to carry its oil. Some 16 of the period deals fixed were done by tanker operators.

The period contracts in 2003 included

- 22 contracts with an average period of 1.8 years and average rate of USD 13,563 for tankers 26-47,000 dwt,

- 11 contracts with an average period of 1.6 years and average rate of USD 17,910 for tankers 64-75,000 dwt,

- 33 contracts with an average period of 1.9 years and average rate of USD 17,872 for tankers 80-115,000 dwt,

- 10 contracts with an average period of 1.8 years and average rate of USD 23,850 for tankers 127-155,000 dwt,

- 14 contracts with an average period of 2.8 years and average rate of USD 21,229 for tankers 233-310,000 dwt.

The reason for the relatively low period chartering activity is probably the relatively high spot market, which on average has generated much higher rates than the period market.