In Hellenic Shipping News 03/06/2015
Bunker prices at Fujairah averaged $323/mt in the first quarter of 2015 compared to $447/mt in the fourth quarter of 2014. Bunker prices varied between a high of $386.5/mt on the 18th of February and a low of $264.5/mt on January 13th, said Frontline in its market outlook analysis, after it posted its first quarter results. Similarly, bunkers in Rotterdam averaged $280/mt in the first quarter of 2015 compared to $417/mt in the fourth quarter of 2014. Bunker prices varied between a high of $325/mt on the 16th of February and a low of $232/mt on January 13th.
The tanker owner noted that “the market rate for a VLCC trading on a standard ‘TD3′ voyage between the Arabian Gulf and Japan in the first quarter of 2015 was WS 59, representing an increase of 3 WS point from the fourth quarter of 2014 and 8 WS points higher than the first quarter of 2014. The flat rate decreased by 2.25 percent from 2014 to 2015″.
It added that “the market rate for a Suezmax trading on a standard ‘TD20′ voyage between West Africa and Rotterdam in the first quarter of 2015 was WS 90, representing an increase of 2 WS points from the fourth quarter of 2014 and an increase of 11 WS points from the first quarter of 2014. The flat rate decreased by 1.7 percent from 2014 to 2015.
Meanwhile, in terms of demand, the International Energy Agency’s (“IEA”) May 2015 report stated an OPEC crude production of 30.5 million barrels per day (mb/d) in the first quarter of 2015. This was unchanged from fourth quarter of 2014. The IEA estimates that world oil demand averaged 93 mb/d in the first quarter of 2015, which is a decrease of 0.7 mb/d compared to the previous quarter. IEA estimates that world oil demand in 2015 will be 93.6 mb/d, representing an increase of 1.2 percent or 1.1 mb/d from 2014.
Supply-wise, Frontline said that “the VLCC fleet totalled 642 vessels at the end of the first quarter of 2015, four vessels up from the previous quarter. Five VLCCs were delivered during the quarter, one were removed. The order book counted 87 vessels at the end of the first quarter, which represents 13.5 percent of the VLCC fleet. The Suezmax fleet totalled 455 vessels at the end of the first quarter, five vessels up from the previous quarter. Six vessels were delivered during the quarter whilst one was removed. The order book counted 71 vessels at the end of the first quarter, which represents approximately 16 percent of the Suezmax fleet”, it noted.
Meanwhile, in the product tanker markets, Frontline noted that “the market rate for an MR trading on a standard “TC2″ voyage between Rotterdam and New York in the first quarter of 2015 was WS 143, representing a decrease of 17 points from the fourth quarter of 2014 and a increase of 9 WS points from the first quarter of 2014. The flat rate decreased by 0.5 percent from 2014 to 2015″.
It terms of fleet growth, the ship owner said that “the MR product fleet (47′-52′ dwt) totalled 747 vessels at the end of the first quarter of 2015, up from 734 vessels at the end of the previous quarter. The order book counted 210 vessels at the end of the first quarter, which represents approximately 28 percent of the MR fleet. The LR2 fleet totalled 241 vessels at the end of the first quarter of 2015, up nine from the previous quarter. The order book is at 66 vessels at the end of the first quarter, which represents approximately 28 percent of the LR2 fleet, but we view this as part of the Aframax order book (therefore less concerned about the high percentage)”, it concluded.
