Not Logged In, Login,

Wednesday, December 13, 2017

Baltic trades – ice premium reduces as ice-classed availability grows

Geneva-based shipbroker Riverlake has done a study on the tanker trade from the Baltic ports of Primorsk and Tallinn.  The average freight rates obtained for ice- classed 100,000 dwt aframaxes trading between Primorsk and the UK and Continent were lower for almost the entire year 2005 (WS 218) than the figure obtained in 2004 (WS 292), even though during the period April to September the rates were quite similar.

The biggest transporters from Primorsk during 2004 and 2005 were:

Largest exporters 2005

 

Largest exporters 2004

Oil company

000 ts

% of total

 

Oil company

000 ts

% of total

TNK

9,588

17%

 

Lukoil

9,139

25%

Lukoil

9,139

16%

 

TNK

5,990

17%

Rosneft

8,879

16%

 

YUKOS

3,987

11%

SURGUT

7,511

13%

 

Sibneft

3,799

11%

Sibneft

5,210

9%

 

SURGUT

3,661

10%

Others

16,151

29%

 

Others

9,578

26%

Total

56,478

100%

 

Total

36,154

100%

Largest charterers 2005

 

Largest charterers 2004

Charterer

000 ts

% of total

 

Charterer

000 ts

% of total

Clearlake

11,851

21%

 

Europet

7,437

21%

Litasco

7,539

13%

 

Sibneft

5,698

16%

Sibneft

5,510

10%

 

Litasco

3,991

11%

Vitol

5,499

10%

 

Petroval

3,618

10%

Neste

4,100

7%

 

Neste

2,996

8%

Others

21,979

39%

 

Others

12,414

34%

Total

56,478

100%

 

Total

36,154

100%

The most active tanker that carried the most cargo from Primorsk (both in 2004 and 2005) was the Neste’s 2003 built 106,208 dwt Mastera that carried 3.3 m tonnes of cargo, which means that this tanker made some 33 trips to Primorsk during 2005. The second most active carried 2.8 m tonnes and the third most active 2.1 m tonnes.

Talinn is a smaller port but we see some of the same charterers as from Primorsk:

The biggest Talinn charterers in the market during 2004 and 2005 were:

Largest charterers 2005

 

Largest charterers 2004

Charterer

000 ts

% of total

 

Charterer

000 ts

% of total

Clearlake

6,377

47%

 

Clearlake

5,152

14%

Koch

2,860

21%

 

Sibneft

1,971

5%

Alpine

1,493

11%

 

IPP

1,381

4%

Sibneft

1,290

10%

 

Koch

830

2%

STASCO

680

5%

 

 

 

 

Others

734

1%

 

Others

3,879

11%

Total

13,434

100%

 

Total

13,213

37%

The most active tanker that carried the most cargo from Talinn (both in 2004 and 2005) was the Neste’s 2003-built 91,263 dwt tanker Natura that carried 0.9 m tonnes. The second most active carried 0.39 m tonnes and the third most active 0.3 m tonnes.

The average WS freight rate obtained for 100,000 dwt aframaxes between Tallin and the UK and Continent was 162 in 2005 compared to WS 190 in 2004.

This means that the so-called ice premium has almost halved in 2005 compared to 2004 from 102 WS points to just 56. The latest phase of the pipeline capacity increase to Primorsk to 5.2 m tonnes is being completed at the beginning of this year, which means that export volumes from this area will stagnate for a time.  However according to Riverlake the availability of ice-classed tankers for the Baltic trade has increased from some 28 for the winter 2004/05, to 35 for the winter 2005/06 and will increase to 55 for the winter 2006/07, compared to a requirement for some 25 aframaxes (based on 2 trips per month).

Contact: Erik Ranheim