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Lagos — The decommissioning of single-hull tankers this year is unlikely to impact either oil tanker rates or the movement of oil from the Gulf to other parts of the world, industry players have said.
As per International Maritime Organisation's regulation, 2010 will see phasing out of single-hull tankers. This means these ships will move out of the market and thus reduce tanker supply. However, the industry believes the reduced supply of tankers will have no correlation with tanker rates, as depletion of single-hull tankers in the market will offset supply of newbuilds.
"This [phase out] will not have any effect on tanker rates as it has already been priced and factored into the market. Most charterers and tanker owners have already phased out single-hull tonnage and now their availability is really reduced as most of these ships have gone for scrap or been converted to floating storage units," Alexander Hamalton, General Manager, Middle East, Barry Rogliano Salles, a French ship broking firm, told Emirates Business.
There were many deliveries of newbuilding double-hull tankers last year that will continue this year and in 2011, which would compensate for the phasing out of single-hull tankers, Hamalton, whose firm specialises in liquid bulk (mainly crude and clean petroleum products) and specifically in brokerage of tanker chartering, said.
Last week, the Japanese shipping firm Mitsui OSK Lines also expressed a positive outlook for the tanker sector this year. "An improvement in the tanker market is anticipated due to recovery in demand for petroleum products and the withdrawal of single-hull VLCCs. In addition, the global economy is bottoming out and the container ship business is expected to see increased cargo trade and progress toward recovery of freight rates. Therefore, the company made an upward revision of its earlier announced consolidated business outlook for financial year 2009, ending March 31 this year," a company statement said.