Breaking News

Vimpelcom Agrees to Sell 51% of Djezzy to Algeria for $2.64 Billion
Tweet TWEET

Supertanker Rates May Rise on Demand, Africa, Dynacom Says

Ody Valatsas, chartering manager at Dynacom Tankers Management Ltd., comments on the market for supertankers lifting 2 million-barrel cargoes of Middle East crude oil.

Very large crude carriers, or VLCCs, can earn $22,712 a day more loading in West Africa than in the Persian Gulf, according to data compiled by Bloomberg yesterday. Returns on the industry’s benchmark Saudi Arabia to Japan route yesterday declined 6.2 percent to $14,412 a day, a rate that’s unprofitable for some owners.

“Charterers seem quite relaxed to show their cargoes. That’s why we’ve seen only half of the December program covered. So there is the other half pent up and the West Africa market is very strong without VLCCs in position for December” cargo loadings.

That’s led to “several” vessels sailing empty to West Africa from the Persian Gulf, lowering the supply of carriers available for hire in the world’s largest crude oil loading region, Valatsas said.

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

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.