Strong Market Continues
In 2000, VLCCs obtained S53.000 per day. up from less than $20,000 in 1999. Old VLCCs reached $33,000 per day compared with only $11,000 in 1999.
The freight market boom also had its effect on medium size crude carriers. After poor market conditions in 1999 with modern Suezmaxes obtaining $15,000 per day the average in 2000 was $40,000. Corresponding figures for modern Aframaxes were $13,000 as an average in 1999, reaching $37,000 in 2000. Peak rates in the year for both types were recorded in December at $60,000 per day.
Large clean carriers (LR2) last year obtained S32.000 per day. which is $18,000 higher than the 1999 level.
Modern MR types rose from S8.000 per day to SI6.000 per day in year 2000, with more than $30,000 in December.
Ship Values Secondhand values of tankers increased in line with the freight market, but there were large variations according to type and age. Given the booming freight market in the second half of the year both resale and secondhand values for most modern tankers exceeded newbuildings prices. With net earnings of more than SI million per month this was quite rational.
Post 1990-built crude carriers went up between 15 and 50 percent over the year. The strongest price rise was seen for Aframaxes, the weakest for VLCCs. The main explanation for these differences is the liquidity in the various segments. Another important point is that VLCC newbuilding prices for Suez- and Aframaxes were up to 17 percent. For product carriers built after mid-1980s we recorded price increases from 20 to 30 percent.
For older crude carriers values have risen by as much as between 50 and 80 percent. Older vessels will normally be subject to much larger relative price fluctuations than modern vessels, because current market conditions will be more dominating for the remaining lifetime.
Activities in the secondhand market were significant- ly higher in 2000 than in the year before, when transactions were at an extremely low level.
World oil production rose by more than three percent, or by 2.5 mbd. Middle East output was up as much as six to seven percent or 1.3 mbd, contributing strongly to the high growth in tanker tonnage demand.
OPEC's crude oil production surged by five percent, from 26.6 mbd in 1999 to 28 mbd in 2000. Tanker tracking data, however, suggest that seaborne liftings out of the Middle East have expanded more slowly than output. An increase in regional consumption may explain part of the gap, but certainly not all. We believe there has been substantial regional stockbuilding particularly in the second half of the year. In October/November 2000 most OPEC members were at full production capacity reaching an actual production of 29.4 mbd, compared with an estimated total capacity of 31 mbd. Only Saudi Arabia had significant spare capacity.
Seaborne Oil Trade World seaborne trade in crude and refined products based on export figures rose by four percent. Preliminary data suggests that crude transports were up almost six percent, while transports of refined products declined by more than one percent. According to R.S. Platou estimates, there was a moderate increase in transport distances from 1999 to 2000
Other stories from June 2001 issue
- Galician Grit page: 8
- MariTel Completes Field Test of Wireless DSC VHF page: 10
- ASRY Converts Heavy-Lift Crane Ship page: 12
- Transfer of Ownership Commences at Grand Bahama Shipyard page: 12
- Hydrex Breaks Ground with Repair page: 13
- Detyens Shipyard Profits From Dredger Work page: 14
- Derecktor Signs Contracts For Two Vessels page: 15
- Rodriquez Cantieri Navali Wins $57M, 10-Boat Contract page: 16
- Rodriquez Cantieri Navali Launches Largest Fast Ferry page: 18
- Freeport Shipbuilding Delivers Aluminum Research Vessel page: 18
- Image Marine Delivers Aquacat To Blackbeard's Cruises page: 19
- VT Concludes Sandown Class page: 20
- VT Reaches Milestone With New RN Survey Ships page: 20
- EuroFerrys Takes First Auto Express 101 page: 22
- Caterpillar Introduces Compact Marine Propulsion Engines page: 24
- Jotun Expands U.S. Presence page: 26
- Maritime World Joins Together at Asia Pacific Maritime 2001 page: 28
- Camacho Returns to His Roots page: 30
- U.S. Shipbuilding Industry: A Bright Future Tempered with Challenges page: 34
- No Leg Left to Stand On - An Obituary for MarAd? page: 36
- Bordelon Marine To Christen First of Three Utility Boats page: 38
- SeaStreak Launches New High-Speed Catamaran page: 39
- Lassen (DDG 82) Commissioned In Florida page: 40
- Future Requirements for Shuttle Tankers in the Gulf page: 42
- MARCO Shipyard Delivers Ahead Of Schedule page: 47
- Shipbuilding Prices Firm Up page: 48
- Strong Market Continues page: 50
- Frozen Gas Market Heats Up page: 50
- Freight Rates To Fly High In Coming Years page: 51
- Greasing the Skids page: 56
- State of the P&I Market: As Stocks Drop, Rates Will Rise page: 58
- Innovators Recognized At Patent Ceremony page: 62
- New Launching Platform For Navy page: 63
- Tests Prove CLT Prop Characteristics page: 67
- Texas Maritime Academy Ship Simulator Attracts All Levels page: 68
- World Industry Drives Freight Rates Up page: 70
- MITAGS Chooses STN Atlas For Major Upgrade page: 73
- Superior Diesel and ALGAE-X Sign Distributor Agreement page: 78
- Incat Takes Top Honors At Cruise & Ferry page: 80
- Portland Remains New England's Largest Tonnage Port page: 81
- An Artistic Interpretation page: 84
- Rolls-Royce to Supply Podded Propulsion For QM2 page: 90
- BV Proposes 12,500-TEU Mega Containership page: 92
- Piracy Hits New Heights page: 95
- New Welding Process Put To The Test page: 96
- Analysts Predict Hutchison Whampoa Expansion Will Offer Long Term Potential page: 97
- Osprey Maritime To Sell LNG Operations For $635 Million page: 97
- Norwegian Line Unable to Remedy Leaky Sprinklers on the Norway page: 98
- Analysts Speculate Possible Carnival / Hapag-Lloyd Deal page: 98