IEA Tanker Rates March OMR
From the April 2007 Oil Market Report
Million-barrel crude tanker rates in the Mediterranean hit 15-month peaks at the end of March following a strike at Fos, a key European oil import hub in France. Regional vessel availability was reduced sharply as almost 40 tankers were left stranded offshore, unable to discharge their cargo. In the Middle East Gulf, increased vessel demand pushed VLCC rates towards six-month highs in late March, as US refiners sought transportation for crude to arrive ahead of peak summer demand. Clean product tanker rates in the Atlantic rose to the top of five-year ranges in March, supported by strongregional competition for vessels.xxx
On 14 March, port workers at Fos began a strike which lasted 17 days. This left almost 40 tankers stranded, unable to discharge oil into the Marseille refining complex or into pipelines which feed inland refineries and other European countries. The consequent erosion of regional vessel availability pushed cross-Med Suezmax rates up from under $4/tonne to almost $11/tonne on 31 March when the strike finished, a 15-month high. Slim vessel supply also raised West African Suezmax rates from under $10/tonne to nearly $18/tonne over the same period, for trades to the US Gulf. North Sea Suezmax rates were not significantly affected and remained at seasonal norms of $9/tonne for exports to the US Atlantic coast. Aframax rates in the Mediterranean were also boosted substantially by the strike but fell sharply, alongside other regional rates, at the start of April, as the action ended and vessels were offloaded. xxx
Competition for tankers in the Middle East Gulf tightened vessel supply considerably in March, boosting VLCC charter rates. US refiners actively sought transportation to move crude for arrival after the maintenance season, as peak summer demand approaches. Further competition for vessels for late March and first half April loading came from Eastern refiners, notably Korean, despiteapproaching refinery turnarounds. VLCC rates to Japan rose from around $10/tonne to almost $15/tonne in the first three weeks of March. Corresponding rates to the US Gulf rose from $16/tonne to over $24/tonne during the same period. Middle East Gulf Suezmax rates were also supported in March as thin vessel availability prompted charterers to consider splitting cargoes on to smaller vessels. Tanker movement reports confirmed that, as chartering activity implied, Middle East sailings increased in late March and April. East- and westbound VLCC rates eased at the end of the month as vessel supply increased. xxx
US refinery maintenance reduced demand for short-haul crude imports, causing dirty Aframax rates in the Caribbean to sink from $14/tonne to $10/tonne in March, continuing the downward trend seen in February. Conversely, the need for product imports was one factor which supported clean rates to the US from the Caribbean and North Europe. Charter rates for 33,000-tonne clean vessels on the latter route rose from $24/tonne to $28/tonne in March. Although US gasoline imports were actually no higher than average seasonal levels, Atlantic Basin clean rates were supported by continued competition for European gasoline from West African refiners. East of Suez clean tanker rates were flat or slightly weaker, despite firm Asian naphtha demand. Maintenance at certain Middle East Gulf product export terminals reduced available cargoes. xxx
Million-barrel crude tanker rates in the Mediterranean hit 15-month peaks at the end of March following a strike at Fos, a key European oil import hub in France. Regional vessel availability was reduced sharply as almost 40 tankers were left stranded offshore, unable to discharge their cargo. In the Middle East Gulf, increased vessel demand pushed VLCC rates towards six-month highs in late March, as US refiners sought transportation for crude to arrive ahead of peak summer demand. Clean product tanker rates in the Atlantic rose to the top of five-year ranges in March, supported by strongregional competition for vessels.xxx
On 14 March, port workers at Fos began a strike which lasted 17 days. This left almost 40 tankers stranded, unable to discharge oil into the Marseille refining complex or into pipelines which feed inland refineries and other European countries. The consequent erosion of regional vessel availability pushed cross-Med Suezmax rates up from under $4/tonne to almost $11/tonne on 31 March when the strike finished, a 15-month high. Slim vessel supply also raised West African Suezmax rates from under $10/tonne to nearly $18/tonne over the same period, for trades to the US Gulf. North Sea Suezmax rates were not significantly affected and remained at seasonal norms of $9/tonne for exports to the US Atlantic coast. Aframax rates in the Mediterranean were also boosted substantially by the strike but fell sharply, alongside other regional rates, at the start of April, as the action ended and vessels were offloaded. xxx
Competition for tankers in the Middle East Gulf tightened vessel supply considerably in March, boosting VLCC charter rates. US refiners actively sought transportation to move crude for arrival after the maintenance season, as peak summer demand approaches. Further competition for vessels for late March and first half April loading came from Eastern refiners, notably Korean, despiteapproaching refinery turnarounds. VLCC rates to Japan rose from around $10/tonne to almost $15/tonne in the first three weeks of March. Corresponding rates to the US Gulf rose from $16/tonne to over $24/tonne during the same period. Middle East Gulf Suezmax rates were also supported in March as thin vessel availability prompted charterers to consider splitting cargoes on to smaller vessels. Tanker movement reports confirmed that, as chartering activity implied, Middle East sailings increased in late March and April. East- and westbound VLCC rates eased at the end of the month as vessel supply increased. xxx
US refinery maintenance reduced demand for short-haul crude imports, causing dirty Aframax rates in the Caribbean to sink from $14/tonne to $10/tonne in March, continuing the downward trend seen in February. Conversely, the need for product imports was one factor which supported clean rates to the US from the Caribbean and North Europe. Charter rates for 33,000-tonne clean vessels on the latter route rose from $24/tonne to $28/tonne in March. Although US gasoline imports were actually no higher than average seasonal levels, Atlantic Basin clean rates were supported by continued competition for European gasoline from West African refiners. East of Suez clean tanker rates were flat or slightly weaker, despite firm Asian naphtha demand. Maintenance at certain Middle East Gulf product export terminals reduced available cargoes. xxx
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