Traders book VLCCs for floating storage

Traders book VLCCs for floating storage

Two VLCCs have been booked as floating storage within Asia in preparation for low-demand season in the Far East.

Clearlake has reportedly booked Soechi Lines’ Arenza XXVII (308,600 dwt, built 2000) for up to four months at a daily rate of $32,000, brokers tell Splash.

ST Shipping, part of Glencore, has also taken booked Sinokor Merchant Marine’s VLCC Plata Glory (300,100 dwt, built 1999) for one month at $22,000 a day, according to Reuters.

The deal reportedly includes two one-month extension options at $26,000 and $29,000 daily for the second and third month respectively.

The number of tankers used for floating crude storage around Singapore fell to 30 this month from 40 in May, according to data compiled by Reuters.

Floating storage of crude costs around $1.13 per barrel per month. The price differential between August and November contracts for Brent crude is currently just $1.61 per barrel, making profit margins for floating storage pretty slim.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

Related Posts