Use the link to get access to the ballast water management guide, the ship master’s security manual and many other publications. With demand still some way off from recovering we don't expect oil in-transit volumes to go above 2020 levels in 2021. Contact Oil product tanker earnings have fared less well, with the largest LR2 tankers earning USD 18,785 per day on 28 August. The deadline is 20 May 2020. The US is set to consider tightening sanctions on Venezuela at the end of October. The Shipping KPI system is the tool for you. Already, tanker freight rates have fallen from the highs they reached when the market peaked in April, with all crude oil tankers seeing earnings beneath their daily break-even levels. on: Lines are open WinGD 12X92DF GUINNESS WORLD RECORDS™ Most Powerful Marine IC (Otto Cycle) Engine, Austal’s VOLTA Series – Electric-powered High Speed Ferries, Transport Webinar Series – Maritime | Episode 1, SMM Director Claus Ulrich Selbach on the current status of SMM DIGITAL 2021. A similar decline has occurred for LR2s, which, on 28 August, stood at USD 20,500 per day, down from USD 40,000 in late April. As it looks now, 2022 seems to be the year in which volumes will have recovered. Despite lower oil demand because of the public health measures, many countries saw imports rising year on year in the second quarter, as they sought to cash in on the cheap oil. Highlights. Contact By 7 August, the US was supplying 19.4m bpd of oil products, the highest level since 20 March, but still 2.7m bpd (-4.1%) less than in the corresponding week last year. VLCC Another week of mostly static rates. Capesize Timecharter Earnings vs Vessel Speed Clarksons is the world’s leading provider of integrated shipping services, bringing our connections and experience to an international client base. The circumstances of this sale, however, continue to … 09:00-17:00 (CET). Prices for newbuildings are expected to inch higher to US$95.5M in 2020 before trending above US$100M by 2022. Membership The 280,000mt to US Gulf via the Cape/Cape routing is assessed eight points lower at WS23.5. Tensions have also been on the rise in the Middle East Gulf after US seizures of Iranian oil that was headed to Venezuela – which has also brought an increased focused on ships turning off their AIS locators when loading fuel in Iran, as well as ship-to-ship transfers. Only China bucks this trend with record-high crude oil imports, benefiting from the low oil price. Somewhat tellingly, ship speeds rocketed with it, as MarineTraffic data shows. on: Lines are open Concerns around tension in the region pushed FFAs and spot rates much higher, with a VLCC now getting paid more than USD 15,000 per day to carry crude oil from Middle East Gulf to China, much higher than the USD 11,000 per day it would earn two days … A June boom saw rates surge. Want to buy or download a BIMCO publication? on: Contact 09:00 until 17:00 (CET). 08:30-17:00 (CST). Despite tensions between the US and China ratcheting up in previous months, there was progress made on the Phase One trade agreement, with record-high US crude oil exports to China in May, when 5.1m tonnes was exported. For all the latest of BIMCO's own market analysis on global shipping, including macroeconomics, dry bulk, tanker and container. VLCC charter rates skyrocket past $200K per day. Time charter rates for tanker ships have also fallen. Like crude oil production, product supplied in the US remains below last year’s level, though up from the lows reached at the height of the lockdowns. Travel restrictions remain complicated and demand for global travel is still abated. This is producing even more attractive economics for oil traders. Communications The last VLCC to be demolished was in June 2019, with only four having been demolished since October 2018. Freight rates (as seen in the graph below) followed suit, dropping an astounding 80% and 68% respectively since April 2020 to reach yearly-lows in December of this year. In contrast to the other major shipping sectors, the crude oil tanker sector has seen very little demolition in the first six months of the year. Handysize rates have recovered from their low of just USD 1,974 per day on 21 August, to stand at USD 5,601 a week later. Please select a reason for contacting BIMCO from the list above to find the best contact number. 09:00-17:00 CST. IT support The last VLCC to be demolished was in June 2019, with only four having been demolished since October 2018. This 84-year-old … This slowdown in fleet growth will continue in the coming years, as the pandemic has lowered contracting activity. Providing us with as much detail as possible will help us to deal with your enquiry quickly. Jumbo’s HLV Fairpartner transporting 10 TPs in one go! Whether or not China continues to make these higher purchases of US crude oil remains to be seen, with any that are made providing a good boost to the crude oil tanker shipping market, given the long sailing distance between the loading and discharging ports. Peter Sand, BIMCO's Chief Shipping Analyst will present perspectives and insights on dry bulk shipping amidst a pandemic at 09:00 on 24th February. 16 June 2020 13:45 GMT Updated 16 June 2020 15:36 GMT By Gary Dixon VLCC rates have been holding steady so far this month due to one-off factors on the tonnage supply side. A new VLCC is worth 7.5% less now than at the start of the year, and the value of an LR2 has fallen by 1.7% – drops of USD 7.35m and USD 0.86m respectively. Daily rates on main tanker routes as compiled by shipbroker Charles R. Weber. Earnings waiting game Find specific taxes, tariffs and charges for a port, state or county. Over the full year, BIMCO expects that the oil product tanker fleet will grow by 2.7% and the crude oil tanker fleet by 2.4%. That represents a drop of more than 50% in the space of a week -- … Given the global recession and lower transport demand, however, the tanker industry is set for some challenging months. 08:30-17:00 (CET), Lines are open Though Chinese demand for crude oil and oil products has risen from the low point in February, much of this extra crude oil is going straight into storage. BIMCO's Shipping Number of the Week, fleet graphics and 3rd party market reports on dry cargo, tanker, container, demolition, newbuilding and sale & purchase. ... 19.5M bbl/day in May and 13.7M bbl/day in June. Switchboard Telangana’s Manasa Varanasi crowned VLCC Femina Miss India World 2020; No change in policy on Jammu and Kashmir, says U.S. ... the link to Brent crude oil pricing saw June oil deliveries fall to US$25/bbl. Rates, while still very high, are rapidly falling back. Online Daily Newspaper on Hellenic and International Shipping, This site uses cookies to enhance your user experience. In July, China again imported more than 50m tonnes of crude oil (51.3m tonnes). However, as evidenced by flight passenger numbers in the US still being down considerably, demand for oil products still has a way to go. Illustrating the falling price, despite the full-year 12.1% increase in volume terms, Chinese crude oil imports have dropped in value by 23.7%. This would aim to put a stop to the limited activity that is still happening, primarily with European and Asian buyers. The last VLCC to be demolished was the 300,361 DWT Watban which was scrapped in Bangladesh in June 2019. According to assessments of VLCC spot rates issued by Clarksons Platou Securities, rates peaked on Oct. 11 at an average of $295,100 per day, fell slightly to $281,000 day on Oct. 14, then took a big dive – down 31% – to $194,900 per day on Oct. 15. Owner-, broker- and agency members can access information about non-payment issues, fake invoices and fraudulent behaviour reported to BIMCO. The shipping market is a cyclical one, where freight rates can go from sky high in one period, giving ship owners massive profits, and plummet in the next, causing them to barely cover voyage costs. This helps us direct your call to the correct department. So far this year, 547,334 DWT of oil-product tankers have been removed. Daily rates on main tanker routes as compiled by shipbroker Charles R. Weber. This represents a marked slowdown from last year, when they grew by 4.6% and 6.2% respectively. Contracting for crude oil tankers has fallen by 37.9% so far this year compared with last. The easing of lockdown measures has sounded the starting gun for demand recovering, but the EIA and others are still forecasting lower demand in 2021 than in 2019, so major oil producers are having to find a balance between increasing production and slowly increasing demand. The OPEC+ alliance, which includes the OPEC countries as well as ten other oil producing nations, the largest of which is Russia, has already begun reducing its production cuts, increasing its output by 2m bpd to 7.7m bpd, from 9.7m bpd immediately after the oil price war. The higher demand for shipping at the time was not because of higher immediate consumption, but because of future demand being brought forward as importing refiners sought to benefit from the lower price. VLCC rates fall to $21,000 a day in ‘overdue nosedive’ 24 June 2020 Low activity in the Middle East finally takes its toll but Libya may offer some small compensation BIMCO's Reflections is published each year and delivered to all BIMCO members. Prices for 10-year-old VLCC assets are projected to average US$45.5M, approximately US$20.0M below the price of a 5-year-old VLCC asset during the same period. Despite the strong purchases in May and June, however, China remains far behind on its commitments under the Phase One agreement. There were no changes in rates or sentiment in the Middle East with 280,000mt to USG via the Cape/Cape routing remaining assessed at a shade above WS17 and 270,000mt to China hovering around WS26.5. Another week of mostly static rates. BIMCO expects demolition activity to rise as freight rates and actual demand for tanker shipping falls, with total crude oil demolition coming to 7.5m DWT in the full year and 1m DWT of product tankers being demolished. Singapore Office This helps us direct your message to the correct department. Get this coupon. The tanker industry experienced a boost immediately after the start of the COVID-19 crisis, because of the lower oil price and higher exports from major producers. Most of these exports went to short-haul destinations. I believe what Frontline said was that, for instance, 75% of VLCC rates … A stunningly strong 12 months for the tanker shipping industry is now being replaced by lower freight rates, as lower oil production and demand sets in across the globe. Contact The question of when demand will return to pre-pandemic levels remains clouded in uncertainty as the virus continues to spread. on: Lines are open Contact According to Clarksons Platou Securities, VLCC rates as of Aug. 21 were $42,800 per day, up 47% week-on-week and up 202% month-on-month. Though fleet growth will be lower, as a result of the drop in contracting during the pandemic and the poorer outlook in the coming years, the fleet will continue to grow year on year. Brokerages say VLCC rates on the lucrative Middle East to China route jumped to a ballpark figure of $175,000 per day on Thursday (March 12), up … grew considerably larger. As adopted at the General Meeting in Athens, May 2019. The report dated 09 th October 2020 provides a valuable insight into this week’s tanker market dealings, freight rates, and charter activities.. VLCC. The largest, most common tanker today is a Very Large Crude Carrier (VLCC), typically measuring around 300,000 dwt1. Though internal demand has recovered in China, international demand has fallen, with exports down to 3.2m tonnes this July compared with 5.5m tonnes last year. China remained the largest destination for US seaborne crude oil exports in June, even as exports halved. BIMCO expects demolition activity to rise as freight rates and actual demand for tanker shipping falls, with total crude oil demolition coming to 7.5m DWT in the full year and 1m DWT of product tankers being demolished. A six-month review of the deal, originally scheduled for mid-August, has been postponed, with no new date set, highlighting the tensions between the two countries. Control of fuel oil quality and derived pollution, Piracy, armed robbery and other violent criminal acts at sea, Dangers associated with solid bulk cargoes, BACK TO: Container shipping: capacity management key to carriers’ profitability as volumes falter, NEXT: Macroeconomics: a slow and uneven recovery awaits, After the party, the hangover is proving drawn out for tanker shipping, ‘Phase One’ agreement boosts exports and doubles volumes from last year, Tanker shipping: worst not yet over as industry pays for strong second quarter, Top analysts discuss the COVID-19 world in “The shipping markets checkpoint” webinar series, Tanker shipping: freight rates back at loss-making levels after 12 very profitable months. Spot rates in the Middle East Gulf have increased dynamically on Thursday and Friday after two tankers were attacked in the Gulf of Oman. This is on top of the 68 VLCCs delivered in 2019, which led to the VLCC fleet growing by 8.6%. Posted on October 11, 2020 Author admin. Day rates to China from Saudi Arabia stood at just over $100,000 a day on Thursday, according to the Baltic Exchange. Despite this increase, freight rates on this route only narrowly exceeds the daily break-even costs of a VLCC, that on average amounts to USD 25,000 per day. It is a short and accessible analysis on the critical issues faced by the shippin... We will only use your email to respond to your message. The Capesize market didn’t live up to expectations in 2020, but there were hefty swings in rates. In the long run, however, the lower aviation and transport demand, and fundamentally lower oil consumption, will hurt the industry for at least 15 months. on: Lines are open The homepage of the Baltic Exchange, the world's only independent source of maritime market information for the trading and settlement of physical and derivative contracts. Daily rates on main tanker routes as compiled by shipbroker Charles R. Weber. Support & Advice The rates in 2020 probably exceeded TNK's expectations a … LocalShop All. The drop wipes out six years of demand growth, with 2021 unlikely to see a return to 2019 levels. Though revised slightly upwards from its May report, when it forecast a drop of 8.3m bpd, the downside risks weigh on the forecast as the coronavirus continues to spread. The high crude oil imports into China have again caused delays at ports, driving up the inefficiency of the fleet and lowering the number of ships that would otherwise be available – and, in that way, supporting freight rates. At USD 11,949 per day, Suezmax earnings are also around USD 8,000 below breakeven, and Aframaxes can expect to lose USD 7,700 per day, with earnings averaging USD 9,322 per day. At spot rates of US$200,000/day, a VLCC will throw off as much free cash in one quarter as in the previous three years. The Baltic Briefing has issued the tanker report for the 41 st week of this year. Related: Crude tanker spot rates face negative impact in late-2020 and into 2021 In addition to the weakness in crude oil trade, the likely decline in long haul exports from the US to … In fact, only seven crude oil tankers were demolished in the first eight months of 2020, totalling 681,832 dead weight tonnes (DWT). Rates tumbled in the Middle East with 270,000mt to China at WS36.5 region, down 19 points week-on-week. SmartCon / IDEA support Click to Save Vlcc Deals 2020 $4.00 MorningStar Farms® Save Vlcc Deals 2020 $4.00 when you spend $20 on MorningStar Farms® Veggie Foods Products (5.25 oz. Total tanker deliveries have totalled 16.2m DWT so far this year, a 43.9% drop from last year. Ten of these orders are for a series of 50,000 MR tankers placed by Bahri. On Aug. 20, Clarksons Platou noted, “The current rate level is for most crude tanker companies double their cash … In its latest forecast, the US Energy Information Administration (EIA) estimates that global oil demand in 2020 will fall by 8.1 million barrels per day (bpd). Very Large Crude Carrier (VLCC) rates for floating storage have recently traded at about $120,000-$130,000 per day for a six-month charter period, trade sources said. For general guidance and information on cargo-related queries. In fact, crude processing reached its highest ever level in China in July, at 59.6m tonnes, with accumulated year on year volumes up 2.3% in the first seven months of the year.