In a world full of gloom, tanker owners are the only ones smilingLogYcode
Shipowners are having a blast as oil companies, refiners and traders hunt crude oil tankers for storage, pushing up prices at a period when the world economy and industry are collapsing under the loss of demand triggered by the virus epidemic.
It has reversed a business adage to the extent: ‘Shipping is the strongest sector while the market is on the way up and the worst is on the way down.’
Commodity oil storage Commodity tankers are gradually looking to store crude oil on the high seas owing to a downturn in global crude prices and shortage of on-land storage capacity, assuming that the cargo will get better prices when the demand bounces back.
State-run oil refiner Indian Oil Corporation (IOC) has floated a tender to employ, for six months each, a very broad crude carrier, also known as oil supertanker and a Suezmax transporter.
“It could be for transport,” a shipping industry executive said.
“The operators of tankers do a lot,” he added.
A VLCC is estimated for a six-month period at $100,000 plus a day, while a Suezmax carrier goes for $55,000 a day for a sim.