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Friday, September 21, 2018


Freight costs per barrel twice as high as in 1999

According to PIW, freight costs per barrel on 9 October 2000 for most tanker trades were at least twice as high as last year. Below are listed freight costs per barrel on 9 October this year compared to those of one year ago

Arab Light to US Gulf:   USD 2.83/USD 1.15

Bonny Light to US Gulf: USD 2.63/USD 1.00

Brent Blend to US Gulf: USD 2.16 / USD 1.04

Arab Light to Singapore USD 1.19/0.42

The “oil supply/demand” and “OPEC crude oil production” spreadsheets have been updated with the latest September figures. They can be found on the INTERTANKO tanker market pages, and can be downloaded and copied. Please visit the INTERTANKO tanker market pages on our web’s members' area:

Ship building prices set to stay at current level?

World shipbuilding is set to see high levels of activity and continued low prices for the next 15 years, according to the latest report from UK-based Ocean Shipping Consultants. Lower ordering activity and capacity increases, with China in particular raising its market share, will see prices fall again. In terms of VLCC tonnage, contract values will cycle between around USD65 million and USD75 million, much the same as current values, for most of the study period, with a slight peak at around 2010 at nearly USD 80 million. Panamax bulker values are expected to rise to USD 24.5 million in the near term, dropping back to around current values of USD 22.5 million by 2005-2006. Cyclical recovery and fall will see this vessel type finishing at under USD 22 million by 2015, with a fair peak around 2010. Tankers are likely to make up the bulk of ship deliveries over the next 15 years, with older tonnage needing replacement as the International Maritime Organization's new MARPOL changes take effect. Somewhere between 15 and 20 million dwt of older tankers are expected to head for the breakers' yards during the first half of the decade, dropping to under 10 million dwt as time goes on. (Source SST).  See for tanker newbuilding price development.

The Houston based SeaLogistics launched a centralized Web-based trading exchange on 10 October. , is supported by Stentex, Coastal, Koch Industries, LoneStar, R.S. Platou Inc., Skaugen PetroTrans, Teekay Shipping and Premuda among others.

SeaLogistics provides tools, resources, and online capabilities to support the connection of ship charterers with ship owners, including up-to-date vessel positions, quotes, maritime news and other relevant market data.  The exchange also enables the negotiation process in which charterers and ship owners engage in an offer-and-counteroffer negotiation process, and then follows the transaction through online management of the vessel’s voyage. 

INTERTANKO sees several advantages of a complete internet chartering tool including standardised and comprehensive documentation and market transparency. However, these two factors may be the biggest hurdles to the introduction of internet chartering. Today documentation in tanker shipping is far from standardised and charterers insist on using their own documents and special clauses.  A large part of the fixtures are also made privately, in particular in the products tanker market. However if charterers see the benefit of internet chartering, this may eventually bring about standardisation and transparency.  However an article in the Economist states “The duller the market, the hotter the e-commerce” – it does not appear that the tanker chartering is dull or standardised today!

There is an introductory period in progress and until early 2001 all subscription fees for access to the SeaLogistics site will be waived.  The transaction fee will be reduced to 0.5% of freight on transactions concluded via SeaLogistics. follows hard on the heels of SeaLogistics and has also advertised that its new chartering service is ready for beta testing.  Laycan believes that its system will be among the world's first really workable systems for electronic chartering, putting the internet to work as the shipping industry's prime information and communication infrastructure. 

We encourage readers to forward opinions on internet chartering to