VLCCs have been losing $2,100 a day so far this year

VLCCs have been losing $2,100 a day so far this year

Following yesterday’s lead story on the “disastrous” state of aframaxes trading in the North Sea, Splash has data on the losses being made daily on VLCCs.

Allied Shipbroking is reporting that VLCCs have made an average loss of $2,100 per day so far this year, with earnings getting especially bad during the second half of April. Despite record scrapping levels, Allied said in its latest weekly report that it was perplexed by the huge volume of VLCC orders placed at yards this year.

“[T]he recovery for the tanker market in terms of earnings could prove to be a long and arduous journey,” Allied warned.

A report from BIMCO carried by Splash at the start of this month showed that VLCC spot earnings slumped to record lows of just $6,000 a day for the first four months of the year.

Peter Sand, chief shipping analyst at BIMCO, told Splash earlier this month: “VLCC long run historical earnings are currently at the lowest level ever for the average of the first four months.”

Yesterday Splash carried a report from brokers Gibson which noted that aframaxes trading in the North Sea have been losing money in dramatic fashion. Describing rates on the key trade from Hound Point to Wilhelshaven (TD7) as “disastrous”, broker Gibson stated spot TCE earnings on this tradelane so far this year have averaged a negative return of minus $1,750 a day.

 

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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