Supertanker Glut to Curb Rates Rally, Maritime Strategies Says

An excess supply of supertankers will likely curb a rally in charter rates for the vessels, London- based analysts Maritime Strategies International Ltd. said.

Returns from very large crude carriers shipping Middle Eastern oil to Japan will likely rise to $20,600 a day by December from an average of $8,800 a day last month, the freight forecaster said in a report late yesterday. Returns will drop back to $16,800 by March, as more of the ships become available, it said.

The rally “is unlikely to be sizeable given the pressure of supply,” Maritime Strategies said. Maintenance has cut Asian refinery output by about 1.8 million barrels a day in September and October, lowering demand for crude oil shipments, it said.

Maritime Strategies last month forecast VLCC returns on the Middle East-to-Japan route would rally to $26,500 a day by November and further to $28,400 by March.