Tag: VLCC

VLCC spot market is likely to increase further With so much discussion of the poor freight rates available to VLCC owners hiring their ships out for voyages from the Middle East to major consumers east and west, it is informative to see how much the spot market for VLCCs has changed in just a few years.Since 2005, there has been a 25% reduction in reported AG/West spot VLCC voyages from 291 in 2005 to 216 in 2011. Just 11 AG/West fixtures were recorded in January 2012; if annualised the total would be 180, only 62% of the number recorded in just seven years earlier.The US, the world's largest oil consumer and traditionally the major customer for Middle Eastern oil, has diversified its supplies of energy with important effects for the VLCC market. The reasons for this diversification are complex and reflect not only market evolution, but changes to US economic, fiscal, environmental, and foreign policy.According to the latest US Energy Information Agency (EIA), domestic crude oil production up reversed a long-term decline to grow from 5.18million barrels per day (m bpd) in 2005 to 5.47m bpd in 2010. Meanwhile, oil imports from Canada rose from 1.6m bpd in 2005 to ...

Market activity picks up again with the return of Chinese traders from holiday Rates for dirty tankers on key Asian freight routes are expected to rise over the next week as spot market activity picks up again with the return of Chinese traders from holiday.In the clean tanker market, rates are also seen higher due to record high bunker fuel prices in Asia, ship brokers said.Rates on the benchmark very large crude carriers (VLCC) from the Middle East to Japan rose to W65.10 on Tuesday from W58.10 last week as refiners ramp up imports due to cold winter weather in the northern hemisphere. Rates have risen more than 30 per cent since Jan 3.'The winter weather that has taken over most of the northern hemisphere has been the source for much optimism,' said Greek broker Intermodal.'Although there is little evidence that this can last long, we may well see even firmer activity in the coming days as Far Eastern traders return from their Lunar New Year festivities.'China's crude oil imports from Saudi Arabia rose 9.56 per cent in December last year compared to a year earlier to 1.12 million barrels per day, the fourth highest on record on a daily ...

Chinese Shipyard orders its next generation ballast water treatment system Rongsheng Shipbuilding Heavy Industries, a large heavy industries shipbuilding group in China, has chosen Mark II, OceanSaver's next generation ballast water treatment system, for two 317.000 dwt VLCC newbuildings. The contract comes just weeks after DNV type approval, certifying Mark II to fully meet the requirements of the International Ballast Water Convention, and previous system orders placed by Bohai Shipbuilding Heavy Industry (China) and SPP Shipyard (Korea) for two suezmax and four bulk vessels.Scheduled for completion in June 2013, the contract is valued at USD 3 million and represents OceanSaver's first VLCC system delivery for its new Mark II technology. The delivery covers the supply and installation of two sets of Mark II BWT units, granting ballast water flows at a rate of 6.000 cubic metres per hour. "The contract was won due to the proven technical ability of Mark II and the fact that several leading shipyards in China and Korea have also ordered similar systems," says Tor Atle Eiken, Senior Vice President Sales & Marketing of OceanSaver.A consistent, cost effective and dependable BWT application for medium and large vessels, Mark II introduces better performing filtration technology and reduces ...

DABA is a 317,000 DWT VLCC Oman Shipping Company S.A.O.C. (OSC) took delivery of oneof their latest Very Large Crude Carrier (VLCC) the DABA, at Hyundai HeavyIndustries co. Ltd's (HHI) Yard in Ulsan, South Korea on 6th Jan 2012.DABA has a 317,000 deadweight ton (DWT) capacity, is 333meters length overall, 60 meter in beam and a design draft of 21 meters. This is OSC's third VLCC delivery, out of anorder of five, from HHI, and is the Company's 11th out of a future fleet of 17VLCCs. DABA is going to be operated inthe VL8 Pool, managed by NAVIG8, of which OSC is Shareholder. With this, OSCwill have 6 vessels in VL8 Pool.International Tanker Management (ITM), in Dubai, will technically managethe vessel.Since commercial operations began in 2003, OSC now has afleet of 30 vessels, and an order book of 11 vessels to be delivered betweennow and 2013. The DWT capacity of thecurrent fleet is around 4.6 million DWT, increasing to around 8 million DWTonce the order book is delivered.Oman Shipping Company S.A.O.C. is a closed joint stockcompany, incorporated in 2003 and owned by the Government of the Sultanate ofOman through the Ministry of Finance (80%) and Oman Oil Company S.A.O.C.(20%). Headquartered ...

Mitsui O.S.K.Lines - Pool agreement signed The pool agreement governing the formation of a market leading VLCC pool has now been signed by the four partners. Morten Pilnov, Maersk Tankers, will be the Managing Director for Nova Tankers Pool. In this connection, the pool management company, Nova Tankers A/S, has been incorporated with Kazunori Nakai as Chairman.The pool agreement governing the formation of a market leading VLCC pool has now been signed by the four partners MITSUI O.S.K. LINES, LTD. / PHOENIX TANKERS PTE. LTD., A.P. MØLLER - MÆRSK A/S (Maersk Tankers), SAMCO SHIPHOLDING PTE. LTD., and OCEAN TANKERS (PTE.) LTD., SINGAPORE.Morten Pilnov is presently Head of Gas for Maersk Tankers, covering both Handy gas and VLGC. He brings with him extensive experience with pools from the gas segment and will take up the position immediately. Mr Pilnov has been with A.P. Moller- Maersk A/S for 12 years, hereof eight with Maersk Tankers.Kazunori Nakai is the Executive Officer of Mitsui O.S.K. Lines. Ltd. Mr. Nakai will take up the position as chairman of the pool management company in addition to his normal responsibilities. Source: Mitsui O.S.K.Lines

Eco- friendly tanker Sauter Carbon Offset Design has released details of a VLCC design, which the company claims will be the largest and 'greenest' Post-Panamax vessel, and which will provide the most economic form of crude oil transport.The concept, known as 'Emax Deliverance' is described as "a DynaWing solar hybrid supertanker". The designer claims that the "superior fluid dynamic Emax" vessel will obtains half of her power from LNG and the other half from advanced solar and wind power technology .The ship, of 2million barrel/330,000dwt capacity is designed specifically for the newly enlarged locks of the Panama Canal which will accommodate vessels with a maximum length of 426m, beam of 54m and draught of 18mThe hull is designed for low drag, and incorporates a twin-screw propulsion system with twin CRP hybrid propulsion pods reduces fuel consumption and GHG emissions by a claimed 35%. An additional 20%to 30% reduction could be achieved through the 500,000m2 DynaWing boom furling sails and 15% to 20% more by bringing the Solbian solar power generating array into use. Further features that are expected to make a total 75% reduction possible are the Mitsubishi bubble hull and the Wartsila coded LNG hybrid power system.Compared with a ...

AN effort to slim down its VLCC fleet Major tanker owner Mitsui OSK Lines is making a concerted effort to slim down its VLCC fleet. Fresh from reports a week ago of MOL scrapping the youngest VLCC to date - a 1995 double hulled giant - US investment bank Dahlman Rose has added that MOL has scrapped another pair of VLCCs.These two, built in 1996 and 1997, are now the youngest VLCCs to ever have been scrapped. Dahlman Rose suggests a total of 20 VLCCs have been sent for demolition this year, around half of which were sent in the final quarter.As MOL comes to terms with the projected lengthy downturn for tanker rates it has also recently formed a VLCC pool in Singapore which counts AP Moller-Maersk among its partners.Source: Seatrade Asia

Shippers should be given at least three-six months before the implementation The recession-hit shipping companies will get a breather if the cargo support scheme suggested by a Government-appointed working group is implemented.The group wants all shippers (exporters and importers) with more than a pre-specified annual turnover should compulsorily use Indian ships for carrying a third of their goods. Their export incentives will be linked to fulfilling the shipping criteria, said a member of the working group.The group has suggested that shippers should be given at least three-six months before implementing the one-third cargo support scheme. Currently, Indian ships carry less than nine per cent of the country's cargo. The scheme is expected to not only boost the cargo share of national carriers, but also will help expand Indian tonnage.Currently, India has a fleet of 1,119 ships of 11 million gross registered tonnage or grt.In container cargo, the share of Indian ships is only 3.4 per cent. Even in oil and petroleum products, in which national bottoms enjoyed more than 50 per cent share a decade ago, the share has come down to 15 per cent."The scheme will be a game changer for Indian shipping. It will automatically, increase the national ...

Agreement to pool a fleet of around 50 VLCCs Four major shipowners have signed an agreement to pool a fleet of around 50 VLCCs.Mitsui OSK Lines/Phoenix Tankers Pte Ltd, Maersk Tankers, Samco Shipholding and Ocean Tankers, Singapore, have signed a letter of intent to pool roughly 50 VLCCs with an average age of three years.The pool, which could control around 10% of the world fleet is expected to start operations on 1 February next year with offices in Singapore, Copenhagen and New York."The flexibility of a large, young and reliable fleet ensures that the VLCC Pool can, at all times, offer relevant vessels of the highest standard to cater for our customers' need for safe and environmentally friendly marine transportation," the companies said in a statementSource: Seatrade Asia

After a run of weak growth in crude oil demand Japan's three leading shipping companies are getting rid of 10 percent of their supertankers after a run of weak growth in crude oil demand that has undercut freight rates, the Nikkei reported.Nippon Yusen KK, Kawasaki Kisen Kaisha Ltd and Mitsui O.S.K. Lines Ltd are reducing their very large crude carriers (VLCCs) from 90 to 82, the business daily said.The VLCCs measure upwards of 330 meters in length, carry about 300,000 tons of crude, and cost around 10 billion yen ($128.29 million), the Nikkei said.Nippon Yusen has sold three of its 39 VLCCs to a Greek shipping company, each for about $37 million, the daily said.Kawasaki Kisen has sold one of its nine VLCCs to a South Korean firm for $37 million and Mitsui O.S.K. is considering disposing three of its 42 VLCCs by March, the Nikkei reported.VLCCs numbered 570 worldwide at the end of September, about 70 more than in 2007, making for about 17 percent increase in shipping capacity, according to shipping research firm Tramp Data Service Co, the paper said.But global crude oil demand grew less than 4 percent during this time, creating a capacity glut, the Nikkei ...