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GCC
VLCC rates jump most
in five weeks
The cost of delivering Middle East crude
oil to Asia, the world’s busiest route for
supertankers, rose the most in more than
five weeks as the volume of shipments
increased. According to analysts reports,
charter rates for very large crude carriers, or
VLCCs, on the industry’s benchmark Saudi
Arabia-to-Japan route gained 8.7% to 83.24
Worldscale points, the biggest climb since
February 22, according to the Londonbased
Baltic Exchange. Returns from the
voyage surged 19 per cent to US$44,576
(Dh163,716) a day.
Crude shipments to Asia from the Middle
East are expected to increase to 12.86
million barrels a day, up 390,000 barrels
from a month ago, Oil Movements, a Halifax,
England-based company that tracks tanker
deals, said in a report recently. VLCCs haul
two million-barrel cargoes.
“There is a lot of new refining capacity
coming on stream in Asia, and refiners
see this as a time to build stocks,” Oil
Movements founder Roy Mason said. It is a
“bullish signal” for oil prices, he said.
The supply of vessels competing for
cargoes in the region is “balanced” after
demand advanced, Per Mansson, managing
director of Nor Ocean Stockholm AB, said.
He also cited an increased demand for ships
to store cargoes at sea. Daily returns for
suezmax tankers that haul one million- barrel
cargoes added 5.6 per cent to $23,293,
according to the Baltic Exchange.
Returns from aframaxes that carry
650,000 barrels fell for a seventh session,
dropping 19 per cent to $15,634 a day, for a
62 per cent plunge since March 23.
SP Jain Centre of
Management Dubai receives
DED support
The Dubai Department of Economic
Development (DED) in collaboration with its
Foreign Investment Office (FIO) hosted the
Action Learning Programme research teams
of SP Jain Centre of Management (SPJCM)
Dubai to present their research findings in
the logistics sector. This initiative is part of
DED’s continuing support to the Emirate’s
logistics sector.
A 9-member team of the Global Masters
in Business Administration (GMBA)
programme, led by the Director of Industry
Interface Dr Dhrupad Mathur, presented
their research findings to a DED panel
chaired by His Excellency Sami Daen Al
Qamzi, Director General, DED, and Fahad Al
Gergawi, Chief Executive Officer of FIO.
The research studies were conducted
over the last few months in Dubai under
the supervision of David Harris, Director of
International Logistics, FIO and Dr. Rajiv
Aserkar of SPJCM. The three research
projects brought out several strategic
findings that will greatly enhance the
efficiency of the logistics sector.
The team reviewing the international
supply chain interacted with industry
experts, wherein process walkthroughs
and existing challenges were collated. The
process was benchmarked against the
leading ports and a strategic improvement
plan in line with the best practices was
recommended. During the course of this
project, the students got a chance to gain
the insights into the operations of the
industry which would not have been
possible otherwise.
The project to identify barriers dealt with
identifying the operational and entry barriers
for the third party logistics companies in
Dubai. An extensive questionnaire survey
was conducted which was backed by focus
group interviews with the CEOs of world
class 3PL companies. The responses
gathered captured the obstacles that they
faced during the 3PL operations.
The subsequent data analysis helped us
form recommendations for the DED which
would help them reduce the impact of the
barriers that the firms face.
May 2010 Link 13