Freight Costs for Supertankers to Decrease by 35% in the Second Quarter of 2010 - Experts

April 07, 2010

In the second quarter of 2010, freight costs for supertankers may decrease by 35% due to scheduled maintenance at oil refineries of various countries – from Japan to Great Britain. This is why vessel oversupply will emerge. According to IA RZD-partner.Ru with reference to Interfax, this results from inquiry results of analysts, traders and brokers.

Per diem charges are expected to lower from USD 44.58 thousand as of April 1 to average USD 28.76 thousand in the second quarter. If the forecast demonstrates its value in practice, the leading tanker operators inclusive of Frontline Ltd., world’s leader, will incur losses regarding all supertankers, including freighted ones.

It is currently reported that the supertanker freight costs of the first quarter amounted USD 49.91 thousand per diem on average, being the maximum level since October-December, 2008.

The scope of proposal grew significantly which is due to implementation of the most ambitious shipbuilding programme for 30 years. Besides, less tankers are used for oil storing.

The oil world demand is expected to lower in the second quarter by 0.5% as compared to January-March, amounting to 85.9 mln barrels per diem.

Japan oil refineries intend to reduce petroleum processing output by 17% in the second quarter.
Source: PortNews

Freight Costs for Supertankers to Decrease by 35% in the Second Quarter of 2010 - Experts

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