As reported by Bloomberg, the biggest oil-tankers are experiencing 17-month low due to Chinese economic setback for a sixth quarter that curbed the country’s oil demand.
The slowdown in chartering has been considerably intensified with the rising tensions with Iran. Kevin Sy, a Singapore-based freight-derivatives broker at Marex Spectron Group, confirmed to Bloomberg that chartering will fall even further for an estimated 10 percent from June to 115 shipments this month, the lowest score since February 2011.
The fast changing prices have seen owners competing for business knock daily earnings down to levels that do not even cover operating costs.
According to data from the Baltic Exchange in London, a dramatic fall of prices has been recorded in very-large crude carriers’ (VLCCs) route from Saudi Arabia-to-Japan, totaling in a USD 5, 878 loss per day.
This data does not cover speed cuts aimed at reducing fuel expenses, which rose 0.8 percent to USD 609.85 a metric ton.
Based on the Irish Maritime Development Office’s Shipping Markets Review for week 27, 2012, published recently, Saudi Arabia maintains increased production at a time when global demand has declined on slowing economic growth. Prices are forecast to fall again this quarter because Saudi Arabia shows no sign of lowering its output.