Bloomberg News

Mideast Oil Hauled to Western Ports Seen Increasing by Marex

June 13, 2013

Tanker shipments of oil to discharge ports west of the Persian Gulf increased, according to Marex Spectron Group.

The tally of cargoes arranged for shipping on vessels headed west climbed to 32 for June, compared with 18 last month, figures from the broker showed in an e-mailed report today. There are about eight vessels available for each of the three cargoes remaining to be booked for June, Marex Spectron said.

Hire rates for tankers slid this year amid a surplus of the vessels in the gulf. Charter costs for very large crude carriers hauling 2 million-barrel cargoes of Middle East crude to the U.S. Gulf Coast dropped 15 percent in 2013 in terms of Worldscale points, the industry-standard measure, and rates on the benchmark Saudi Arabia-to-Japan route fell 13 percent.

“June is about to finish and supply is again getting longer,” Kevin Sy, a Singapore-based freight-derivatives broker at Marex said in the report. “For the remainder of June, there are still 25 ships available.”

Hire costs for VLCCs headed to Asia from the Middle East rose 1.2 percent to 42.19 Worldscale points today, figures from the Baltic Exchange in London showed. Each of the tankers can hold 2 million barrels of cargo.

Daily earnings for vessels carrying crude to Asia gained 11 percent to $16,378, according to the exchange. Its assessments don’t account for speed cuts aimed at reducing ships’ use of fuel, the industry’s single biggest expense.

The Baltic Dirty Tanker Index, a broader measure of costs to transport oil by sea, declined 0.7 percent to 590, staying at the lowest level since November 2009, according to the exchange.

Today’s biggest change in rates for crude tankers was for 650,000-barrel cargoes bound for the Gulf Coast from the Caribbean, down 5 percent to 95.23 Worldscale points, according to the bourse. The largest move for ships hauling refined fuels was for 38,000 metric-ton cargoes of diesel headed for Europe from the Gulf Coast, up 4.1 percent to 89.64 points, the highest since May 23.

To contact the reporter on this story: Rob Sheridan in London at

To contact the editor responsible for this story: Alaric Nightingale at

Toyota's Hydrogen Man
blog comments powered by Disqus