Shipping association BIMCO sees demolitions supporting tanker market

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Stavanger (Platts)--

17Jun2014/607 am EDT/1007 GMT

Copenhagen-based shipping association, the Baltic and International Maritime Council said Tuesday that it saw high demolition prices and volumes for old tankers supporting an uneventful tanker market going forward.
It said that as expected, the second quarter turned out to be less "action-packed" than the first.
"For all tanker segments, rates have side-stepped, with a few noticeable exceptions," BIMCO said in a report released Tuesday.
BIMCO said Handysize product tankers rates lost steam unexpectedly and fell to $5,000/day recently, against above $10,000 and above for much of May.

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It said VLCCs disappointed, slipping below the $10,000/day mark, compared with above $20,000 in February, to end seven months with average earnings at $30,081 per day from October to the end of April.
BIMCO said the tripling of gasoline imports, primarily into the US East Coast during April and May as they prepared for the driving season, once again failed to change the fortunes of the Handysize/MR segment.
"Perhaps this once so important season is no longer relevant, with quickly changing trades originating from the export of US oil products," it said.
For June/July, BIMCO said it expected earnings for all the three crude oil tanker segments to stay in the region of $10,000-20,000/day.
In the product tanker segment, BIMCO expects earnings on benchmark routes from Arabian Gulf to Japan for LR1s to soften a bit, but stay around $7,500-14,000/day, with LR2s earning a bit more at $10,000-18,000/day.
BIMCO said Handysize rates were set to rise to around $5,000-12,500/day, with MR average rates expected to remain firm in a range of $8,000-12,000/day.
--Patrick McLoughlin, This email address is being protected from spambots. You need JavaScript enabled to view it. --Edited by Jonathan Dart, This email address is being protected from spambots. You need JavaScript enabled to view it.