16OCT2019 - NEWS - Tanker rates hit fresh 15-year high

Rates surged after US sanctions imposed on September 25 on two tanker subsidiaries owned by China’s state-owned Cosco for shipping Iranian crude spooked refiners and traders, who shunned all tonnage connected with the world’s largest shipping company

Adding to the backdrop of circumstances is the removal of many tankers for retrofitting of scrubbers ahead of the IMO 2020 lower-sulphur marine fuel regulations.

VERY large crude carrier rates stabilised near the $300,000 per day level on Monday, as traders and charterers sought direction from China-Iran trade negotiations to determine the duration of the highest shipping costs in 15 years.

The last VLCC reported as provisionally chartered was the 2004-built, Dynacom-owned Folegandros, by Reliance, at $273,000 per day according to Tankers International calculations, which included idling days.

The vessel’s age and ex-drydock status represented a discount for the Middle East Gulf-India voyage, and was below several fixtures seen on Friday above $300,000 per day.