By OGJ editors
HOUSTON, Oct. 20 -- Tanker rates have soared, some to their highest levels for a continual 6-month period in more than 30 years, because of strong oil consumption, said SSY Consultancy & Research LTD, London.
During the first half of 2004, the very large crude carrier spot rate for Persian Gulf-Japan trades averaged $69,700/day in time-charter equivalent terms, compared with $52,750/day for the same period a year ago.
Chinese oil imports are a major influence, SSY said. "With most of that country's crude imports being sourced from the Middle East and West Africa, this added to long-haul tanker employment, to the particular benefit of larger vessel sizes," SSY said.
Tanker demand also was higher in Atlantic markets this year than last year because of booming exports from the former Soviet Union and greater cargo supplies coming from North Africa, SSY said.
Freight market strength has continued in the third quarter. Charter rates remain high despite increased newbuild tanker deliveries and a marked slowing in tanker scrapping activity, SSY said.
This has meant far faster net world oil tanker fleet growth in the first half of 2004 compared with the first half of 2003, SSY said.
