The cost of shipping Middle East crude to Asia, the world's busiest route for supertankers, may advance for a sixth day because vessel supply is constrained in the Atlantic.
When ship charter rates rise in western hemisphere markets, some owners whose tankers are in Europe or the US may choose to compete for West African cargoes rather than sending the ships back to the Middle East, cutting availability.
PTT Pcl, Thailand's biggest energy company, hired the tanker Xin Jin Yang for 138 Worldscale points, according. That's 1.5 per cent above the London-based Baltic Exchange's assessment of WS135.94 for a comparable voyage to Singapore. Xin Jin Yang is fitted with a double hull to cut the risk of an oil spill. That makes it more expensive to hire than single-hulled ships. The exchange's benchmark assessment for freight derivative contracts advanced for a fifth day to WS132.66 yesterday. Worldscale points are a percentage of a nominal rate, or flat rate, for more than 320,000 specific routes. At WS132.66, owners of double-hulled very large crude carriers, or VLCCs, can earn about $100,273 a day on a 39-day round trip from Saudi Arabia to South Korea, based on a formula by R.S. Platou, an Oslo-based shipbroker, and Bloomberg marine-fuel prices.
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