More supertankers now available for hire

The surplus of supertankers competing to ship two million barrels of crude from the Middle East rose recently with more ships available for hire, according to Exim News Service.
There are 20 per cent more vessels for hire than cargoes for delivery over the next 30 days, according to a survey. That’s up from the estimated 15 per cent surplus on October 5.
"There is a significant number of vessels available over the next weeks," analysts with Oslo-based Fearnley Fonds AS said in a report.

More bookings are likely to come into play till next week, triggering some rate increases out of the Middle East.

Global oil demand has been curbed this year by a worsening world economy.

There were 2,109 crude tankers in service at the end of last week, up from 1,983 about a year ago, according to Lloyd’s Register.

Shipping costs on the industry benchmark route, from Saudi Arabia to Japan, fell by 1.5 per cent on October 12 to 37.75 Worldscale points, according to figures available from the London-based Baltic Exchange.

Returns after fuel costs were $12,068 a day compared with operating costs of $11,603 for very large crude carriers (VLCCs), according to estimates from Drewry Shipping Consultants here.

Worldscale points are a percentage of a nominal rate, or flat rate, for more than 320,000 specific routes. Flat rates for every voyage, quoted in US dollars a tonne, are revised annually by the Worldscale Association here to reflect changing fuel costs, port tariffs and exchange rates.

Each flat rate assessment gives owners and oil companies a starting point for negotiating hire rates without having to calculate the value of each deal from scratch.

(Source: Transport Weekly)