Aug. 11 (Bloomberg) -- Nobu Su, a shipping investor who correctly predicted six months ago that oil-tanker rates would more than double, said he expects costs to triple by the first quarter of next year, bolstered by a jump in energy prices.

With a fleet of 20 very large crude carriers, or VLCCs, Su is now the third-largest operator in the single-voyage, or spot, market, behind Frontline Ltd. and Tankers International Ltd. Su, chief executive officer of TMT Co. Ltd., said in February the cost of hiring a VLCC would gain because ships were having to travel farther.

``Winter will be very strong'' as political instability causes oil prices to strengthen, increasing demand for tankers from refineries seeking to secure supply, Su said in an interview in London today. ``We are long,'' he said, meaning he bought derivatives to bet that vessel rental rates will advance.

The cost of shipping Saudi Arabian crude oil to Japan, the industry benchmark, doubled to 244.53 Worldscale points on July 1 from 122.19 points when Su made his prediction. Rental income since then has dropped 80 percent to $29,279 a day, on signs that higher oil prices are crimping demand.

Chinese crude-oil imports fell to their lowest this year, curbing demand for shipping, as high prices discouraged refineries from buying cargoes, the nation's Customs General Administration said on its Web site today.

In the U.S., gasoline demand has fallen for 15 weeks, according to an Aug. 5 MasterCard survey. At least 24 airlines filed for bankruptcy or stopped flying because of fuel costs.

Crude oil traded in New York has declined about 23 percent since reaching a record $147.27 a barrel on July 11.

Sailing Slower

Shipowners are responding to the slump by telling captains to sail their tankers more slowly, three shipbrokers said Aug. 5. The last time that happened, in the final quarter of 2007, it helped the market post its biggest two-month gain in rates for at least 16 years in November and December.

Su, known in the industry as ``Elephant Man'' because some of his vessel names end with ``Elephant,'' made $1 billion in 2006 betting coal and iron-ore shipping costs would gain, according to TradeWinds newspaper.

Worldscale points are used to work out oil-shipping costs for more than 320,000 voyages without having to negotiate each deal from scratch.

To contact the reporter on this story: Alaric Nightingale in London at Anightingal1@bloomberg.net

Last Updated: August 11, 2008 12:33 EDT