Oil tanker rates surge on rising Chinese demand for cargoes


Rates for the largest oil tankers are surging, as Chinese freight traders lead an acceleration in Asian demand for the ships to load Middle East crude, sapping a fleet surplus that had made the carriers unprofitable almost all year.

A VLCC built 16 years ago reportedly was hired today at ~13% more than yesterday’s prevailing prices, for the biggest one-day gain in 2013; rising demand has cut a capacity surplus to the smallest since June 4, according to a Bloomberg survey.

FRO +9.4%, SFL +0.8%, NAT +3%, TK +1.3%, TNK +0.1%, TOO +0.1%, TGP -0.1%.

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Comments (2)
  • Herr Hansa
    , contributor
    Comments (3130) | Send Message
     
    Momentary spike due to supply concerns. This would need to take hold and influence rates for the next 8 months to have a substantial impact. There are still too many ships.
    1 Nov 2013, 07:40 PM Reply Like
  • nmulchan1
    , contributor
    Comments (2) | Send Message
     
    Wow. I don't know why this news item is tagged to TGP. LNG tankers are very specialised to carry the liquid form of gas which has been super cooled to -160 deg. Properties are far different compared oil...
    2 Nov 2013, 09:19 AM Reply Like
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