Tankers

One in five VLCCs ‘break bad’

TankerTrackers.com, one of the world’s foremost sources covering illicit movements of oil, has worked out that one in five VLCCs trading today are “up to no good”.

The Samir Madani-led platform tracks ships breaking sanctions against Iran, Venezuela and Russia. It has counted 174 VLCCs out of the 900-strong fleet are currently breaking rules put in place by the US and the European Union.

The enormous growth of the so-called dark fleet, combined with China’s renewed appetite for oil, has pushed spot rates for VLCCs into six-digit territory over the past week, while prices for secondhand tonnage have doubled in the year since war in Ukraine began.

TankerTrackers.com tweeted that 19.33% of the global VLCC fleet are breaking sanctions, adding: “That means there’s greater demand for the remaining amount, and demand will remain strong if more ‘break bad’ by entering the oil sanctions trade.”

For suezmaxes, TankerTrackers.com reckons 15.2% of the fleet is breaking rules, and for aframaxes it counts 11.3%.

The bullish sentiment for VLCC spot rates over the past week has spread into the period market. Brokers Braemar report a 2015 VLCC, with scrubber retrofit, has covered a four-year deal at $43,000 per day with a string of one year optional rates at the end of the fixed term at $15,000 increments. A three-year deal has been consummated in the high $40,000s on a three-year old ship, and there are other deals at around $45,000 per day for five years.

“There is faith in this market,” Braemar noted in its most recent weekly tanker report.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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