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Saturday, April 21, 2018

MARKET INFORMATION

**  SHIP REGULATION OUT OF PROPORTION, SAYS FEARNLEYS

‘’To allow politicians to render well-kept tankers with a remaining physical lifetime of several years almost valueless, apart from scrap value, is tantamount to theft and would mean substantial transfer of values between shipowning companies”, says Jarle Hammer in Fearnleys Monthly Report for September.

**  VLCC FIXTURES UP BY 12% IN 2000.  AFRAMAX CARGO SIZES VARIES IN DIFFERENT REGIONS

If the current trend continues, cargo tonnes moved by VLCCs in the spot market will increase by some 12% this year based on information from EA Gibson.  This means a doubling of cargo moved in the spot market by VLCCs in the 1990s.  The increases for other size categories are projected to be marginal measured in tonnes. However, the increase in number of fixtures since last year is estimated at 2.1% for Aframaxes to 3600 fixtures, flat at 1810 fixtures for Suezmaxes and a decline of 2.4% to 1020 fixtures in 2000 for Panamaxes.  The largest increase of reported cargo tonnes moved in the spot market has been for the Aframaxes with an increase from 1,756 mil cargo tonnes in 1990 to 4,804 mil cargo tonnes in 2000.  However, most of the increase was at the beginning of the 1990s as there was a doubling from 1990 to 1994. (Source of figures EA Gibson)

When looking at the 104 VLCCs reported to be at Fujairah for loading in the Persian Gulf before end October 2000, 43 were built in the 1970s.  Amongst these 18 were returning from eastern load areas such as China, the Philippines, India and Thailand, 8 from the Red Sea and 8 from the US Gulf/Caribbean area. (Position list from Bassøe). 

In the UK Continent area Aframax cargo sizes in the range 60-120,000 ts, according to Gibson, have gradually increased from some 72,800 ts in 1990 to 81,300 this year.  In the Mediterranean they have been rather stagnant at around 80,000 ts.  In the Caribbean the cargoes were largest 1992 to 1996 at above 72,000 ts, but they are now back at the 1990 level of some 70,500 ts.  The number of Aframax cargoes for W Africa has declined, as has the average size. The largest number of fixtures is for other or unknown destinations and represents more than 40% of the fixtures, and the size of these average cargoes has declined somewhat in the 1990s from almost 82,000 ts in 1990 to less than 80,000 in 2000.  The overall average during the whole period is 77,550 when excluding the very few West African Aframax fixtures with large tonnage.  The overall average has been rather steady since 1993, but was between 76-77,000 tonnes in 1991 and 1992. (Source of figures EA Gibson).

** US FALL IN OIL IMPORT.  SOUTH KOREA HIT BY HIGH OIL PRICES (Source PIW)

Crude oil imports in July fell by 600,000 barrels to 8.73 mbd according to preliminary data, says Petroleum Intelligence Weekly (PIW) 29 September. Saudi Arabia is the biggest supplier of crude to the US with 1.51 mbd, Canada supplied 1.302 mbd, Mexico 1.23 mbd, Venezuela 1.159 mbd and Nigeria 0.891 mbd in July. 

Analysts estimate that a $10 per barrel increase in oil price reduces S Korea’s industrial output by 2.2%, while increasing inflation by the same amount. Korea’s oil import bill for 2000 is estimated to be USD 30 billions, according to PIW 29 September.

For further market information, please visit the INTERTANKO tanker market pages on our web’s members' area: http://www.intertanko.com/members