Saturday, 11 July 2009 09:37
Product carriers (PCs) chartered for storage of petroleum products are increasing further, with the number of such vessels recently reaching about 80 units.
Of these, LR II-type PCs account for about 50 and LR I-type ships about 30. As of mid-June, nearly 50 PCs had been chartered for storage.
The latest number thus represents an increase of more than 30 in only two weeks.
LR II-type PCs for storage increased by around 10 units and LR I-type ones by about 20 units. The number of LR I-type PCs chartered exceeded that of LR II-type vessels mainly because a gap of freight rates between the two types of PCs narrowed, compared with what it was in mid-June, making rates for LR I-type PCs look more reasonable.
Looking at the prevailing spot rates, the benchmark Middle East-Japan rate stood at WS82 for LR II-type PCs and WS90 for LR I-type ships. This compares with WS70 for LR II-type PCs and WS85 for LR I-type ones in mid-June.
With regard to whether the number of ship bottoms charted for storage will continue increasing, the prevalent view as of today is that the upper limit appears to be around 80 ships because it is still uncertain whether crude oil prices will go up or down in the months ahead.
http://www.vinamaso.net/news-events/offshore-energy/80-pcs-chartered-for-storage.html
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