RA BRS 2003 GB >pdf

32
Seacrown
40,039 dwt product tanker,
delivered 2003
by Hyundai Mipo,
operated by Thenamaris
Shipmanagement.
Shipping and Shipbuilding Markets 2003
The transport of refined oil products
With regards to the transport of refined
products in 2002, the year ended in a
state of euphoria. This unexpected surprise
however should not hide the fact that the
year as a whole was rather mediocre: although the
market was able to absorb the numerous deliveries
of new ships, the rates obtained both on spot
voyages as well as time-charters during the first
10 months of the year scarcely surpassed the levels
obtained at the end of 2001.
The weakness of the world economy affected the
demand of refined products, whilst the delivery
of new units were not matched by an equivalent
number of vessels being withdrawn from the
market.
Nonetheless, it is worth noting:
◆ that the Asian zone achieved more activity than
had been foreseen, resulting in a large increase in
naphtha imports, which was particularly favourable
to the bigger sizes: LR1 and LR2.
◆ that although the market was generally depressed,
it nevertheless remained very volatile, showing
that the delivery of 80 new product carriers
(from 30 to 80,000 dwt) was not enough to upset
the balance of supply and demand in tonnage.
For the second year running, daily returns of
product carriers suffered a steady decline.
The ‘handysize’ (handy product)
from 25,000 to 40,000 dwt
Specialising in the Mediterranean-Atlantic zone, this
category was the first to feel the pinch of the weak
American demand and the stagnation in Europe:
daily returns dropped continuously from January to
October, with the exception of the month of April,
with the low point being achieved in September.
Despite the poor state of the market overall,
modern vessels (double-hulled) were always given
priority by charterers.
While average daily returns achieved around
$ 11,500 per day, levels being asked by owners for
periods of 1 year rarely dropped below $ 13,500
per day, reflecting the confidence in modern vessels
by charterers. Very few long period charters (2
years or more) were concluded, with the exception
of refinancing operations (bareboat charters).
Owners confidence is based on the evidence of a
very volatile market, which is explained by two
principal factors:
◆ These vessels are largely used for carrying fuel oil