In International Shipping News 10/06/2015
Suezmax rates on Persian Gulf-to-West routes are rising sharply due to new rules limiting which cranes can be used in tankers loading Basrah Heavy crude and because of persistent port delays, market participants said Tuesday, June 9.
Under the rules that took effect June 1, ships’ cranes must have a safe working limit, or SWL, of at least 20 mt to operate at the single point mooring system of the Basrah Oil Terminal. But around 75% of ships in the global Suezmax fleet have cranes with 15-mt safe working limits.
Cranes perform a range of functions on oil tankers, including hoisting provisions and spare parts on board, but primarily they are for lifting floating hoses into position to connect to the oil manifolds, the connections that allow oil to be loaded and discharged.
“Ships that have cranes with higher limits are charging a premium for loading at Basrah,” said a source with a Suezmax owner.
Suezmaxes typically carry 130,000 mt-140,000 mt of cargo and are a popular mode of carrying crude from the Persian Gulf to Europe or the US.
After the new rules took effect, Suezmax rates shot past w50, from around w38 a week ago.
Market participants expect further upside potential related to the many spot cargoes that move crude each month on Suezmaxes to India from Basrah.
They said if all qualified ships get taken for loading heavy grades, it will have a spillover impact and raise rates for moving the lighter grade on the PG-East routes.
Among the latest fixtures heard, the Arctic was placed on subjects by Saras at w57.5 for June 23 loading of non-heated crude on the Basrah-to-Sarroch route, basis 140,000 mt, brokers said.
“The crane factor is creating problems and increasing the rates,” another source with a Suezmax owner said. DELAYS OF 12-14 DAYS
Effective this month, Iraq started importing a new grade of crude, Basrah Heavy, which will be loaded only from the Single Point Moorings, No. 1 and No. 3, where the new rules of heavier cranes have been imposed, market participants said.
Earlier, Suezmaxes and ships of smaller sizes were loaded only from berths for which there was no specific crane requirements, said a shipping broker based in Kuwait.
Ships scheduled to lift Basrah Heavy will now load from the SPMs irrespective of the cargo nomination, the broker said.
Basrah Light will continue to be exported from the four berths at the port and SPM No. 2, he added.
Suezmax rates are also being supported by delays of 12-14 days in berthing from the laycan date at Basrah Oil Terminal, which increases the turnaround time for a ship before it is ready to undertake its next voyage, contributing to firm rates, said an operations executive with a Kuwait-based shipping services company.
