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Saturday, September 22, 2018

MARKET INFORMATION

Period contracts on the increase

There has been a marked increase in period contracts since January 2000.  Not only has period chartering activity increased, but the length of the periods has also increased and there have again been several contracts above one-year.  It is also interesting to see that it is the trader VITOL that has been one of the most active time charterers with 11 contracts, of six months and above, recorded since the beginning of 2000. We have recorded 8 contracts for another trader, Alpine.

We have recorded some 200 contracts over the period, Hanjin and Petrobras being the most active charterers with 11 contracts each of at least 6 months.  We have recorded 11 charterers taking 5 tankers or more for 6 months and longer.  These charterers have altogether made 87 contracts.  Some 32 of the 74 charterers that have taken tankers on contract of 6 months and longer have only made one contract.  The figures include 16 independent tanker owners having made altogether 28 contracts.

According to our records, the most active time charterers have been: Vitol 11, Petrobras 11, Hanjin 11, Navion 10, Alpine 8, Shell 7, Glencore 7, ExxonMobil 6, SK Shipping 5, PDV Marina 5 and CNR 5 contracts.

Whereas the average length of the contracts of 6 months and longer was 0.9 years in 1999, it was 1.4 years in 2000, and 2.2 thus far in 2001. We have recorded some 63 contracts of two years and longer since January 2000.

The period rates have also increased with the increasing spot market.  Even if the simple average does not give an entirely correct picture, average time charter rates according to our records jumped from 12,579 in 1999, to 20,351 in 2000 and have moved further up to 22,601 USD per day in 2001.  INTERTANKO records period contracts of 6 months and longer. Please click here to view the link.

Oil products demand flat, but increasing use of diesel

According to the 12 February 2001 monthly IEA Oil Market report, the twelve-month moving average for December 2000 of oil products demand for the nine largest markets indicates a 0.1% decline. The only products showing an increased demand are LPG/Naphtha, Jet/Kerosene and Diesel, of which diesel has the largest increase of 3.5%. In contrast the demand for gasoline is down by 0.8%. The increase in diesel demand is strongest in the U.S., Mexico, Korea, Germany and Italy.

Please click here to view the updated world oil supply and demand tables and graphs.

IEA identifies 761 refineries with average distillation capacity of 0.106 mbd

North America is the region with the largest refinery distillation capacity totalling 19.949 mbd or 24.4% of world capacity. The 158 refineries in the US are on average the same size as the world average, but there are many small “tea kettles” in the US and some large refineries. The US also has the largest catalytic cracking capacity of 5.741 mbd (41% of world capacity), and thermal cracking capacity 2.054 mbd (36% of world capacity), and reforming capacity (32% of world capacity).  The US has built no new refineries in 20 years.

China has second largest refinery capacity with 95 refineries with an average size of 0.046 mbd, and third is Russia with 43 refineries with an average distillation capacity of 0.155 mbd. Please click here for a list of all countries with capacities and refinery projects.

Chemical rates strengthening

According to Clarkson, the easy chemical rates Rotterdam/Houston 5-7,500 tonnes have strengthened over the last weeks from USD 25 per tonne in November to USD 38 per tonne mid February. Please click here .Drewry Chemical Quarterly lists rates from 1990-2000 and indicates an increasing trend towards the end of the year in most segments, the strongest being Houston to Yokohama.  Drewry indicates that rates have been helped by the strong clean oil product market. During the last part of 2000 Drewry expects the chemical tanker market to tighten further during 2001 resulting in marked improvements in rates. There has been an increasing ordering activity and it is estimated that some 70 tankers totalling 1.4 mil dwt were contracted in 2001.