Features: - Tanker Operator

More documents

Recommendations

Info

INDUSTRY - MARKETS Daily Rate (Bareboat Basis, USD / d) soft freight market windows, the shipowner/lessee would had the opportunity to trade the vessel profitably on the spot market and on one and three year firm contracts and would had made an operating profit. Of course, the shipowner/lessee would have been exposed to the market risk of either renewing the short-term firm employment contract until fully covering the leaseback term, or risk the spot market. However, in such strong markets 06 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2000-01 Graph 2 2001-01 2002-01 Historical Aframax Rates (on bareboat basis) 2003-01 2004-01 2005-01 2006-01 2007-01 2008-01 Post-Credit Crunch 1YR BBC Equivalent Daily Rate 3YR BBC Equivalent Daily Rate BBC Equivalent Daily Average Spot Rate Pre-Credit Crunch conducive to leasing transactions, there was the case in early 2007 when an Aframax tanker of such vintage could be sold to a leasing company, bareboated back for five years and immediately 'flipped' to a third party also for five years (no market exposure) at a small profit ($1,000 - $2,000 per day). For this article, we have primarily focused on early vintage double hull Aframaxes, since they have been offering the best perspectives for such transactions. A post-2000 built Aframax with a purchase price materially in excess of $60 mill would require a daily rental rate of around $30,000 for five years, which would have made the project unfeasible from an economic/commercial point of view. Of course, the period of the lease can be extended to more than eight years, among other factors, in order to become workable. The term of the lease and the rest of the parameters will be covered in future articles in this series, examining the variables and terms affecting a sale & leaseback transaction. TO *Basil M Karatzas is managing director for projects & finance with Compass Maritime Services, based in New Jersey, US. He has executed projects in the sale & purchase (S&P) sector of the shipping business and has acted extensively on behalf of operating and financial owners in originating shipping transactions (sale & leaseback transactions, raising equity and debt, advisory services on shipping transactions and vessel arrests). He can be contacted at BKaratzas@CompassMar.com, +201- 585-9999, or www.CompassMar.com. TANKER<strong>Operator</strong> � August/September 2008
INDUSTRY - MARKETS Spot or timecharter your asset? The old argument as to whether to opt for long term charters or play the spot market has concentrated some of the finest minds in the shipping industry, usually to no avail. Upon analysing many fleets' charter exposure it soon becomes clear that different mixes of spot and period charters are used. The ideal fleet mix will gain the best results if the peaks of both spot and period are taken advantage of. However, traditional market spikes are becoming more uncertain and short term market hikes more common, making the job of shipping planners more complicated and making it more difficult to predict market behaviour at any given time. US consultancy McQuilling Services has tried to analyse the period charter market. By placing a vessel on period charter an owner will be protected from the current high bunker costs, while at the same time provide a steady income. On the other hand, period charters prevent an owner from maximising potential earnings by taking advantage of a strong spot market and triangulating opportunities. McQuilling said that its analysis showed that the timecharter market is at times driven by the spot market, but is also has its own driving factors. For example, when the spot market is on the rise, the period market tends to follow and the spot market earnings stimulate an increase in period rates. When the spot market is falling, the period market will only fall to a certain benchmark and it will not sink any further, regardless of what the spot market does. During this phenomenon, the period market rates will remain higher than the weak spot market earning for over a year at a time. McQuilling found that a VLCC fixed for 12 months in December 2006 would have generated higher earnings than if left on the Pylon Atlantic is an authorized service center for Tanksystem products Some of the units we repair are: HERMetic UTImeter Gtex Standard & Chemical HERMetic UTImeter Rtex Standard & Chemical HERMetic Dip 2, UTI, UTI GT3 (GTIII) Standard & Chemical For all your UTI (Ullage - Temperature - Interface detector) repairs please contact or ship instruments to: Pylon Atlantic A div. of Pylon Electronics Inc. 31 Trider Crescent Dartmouth, Nova Scotia Canada, B3B 1V6 Web site: www.pylonelectronics.com Email: Halifax_CSR@pylonelectronics.com Tel: (902) 468-3344 Fax: (902) 468-1203 August/September 2008 � TANKER<strong>Operator</strong> 07
Page 1 and 2: TANKEROperator AUGUST/SEPTEMBER 200
Page 3 and 4: TANKEROperator Contents Vol 7 No 8
Page 5 and 6: First Class tankers: a new perspect
Page 7: Asset Price (USD mil) $180.00 $160.
Page 11 and 12: Marinvest provides uncompromised qu
Page 13 and 14: Focus on Germany Germany's seemingl
Page 15 and 16: Although not ruling out the use of
Page 17 and 18: As for AMC, this concern offers thi
Page 19 and 20: INDUSTRY - FOCUS ON GERMANY medium
Page 21 and 22: GERMAN TANKER SHIPPING German Tanke
Page 23 and 24: INDUSTRY - FOCUS ON GERMANY GL acad
Page 25 and 26: Large training centre nears complet
Page 27 and 28: INDUSTRY - FOCUS ON GERMANY Predete
Page 30: INDUSTRY - SHIPMANAGEMENT BSM comes
Page 35 and 36: Managing director Stavros Hatzigrig
Page 37 and 38: Winner - Sea Trade, Dubai Internati
Page 39 and 40: New are the modules reporting and a
Page 41 and 42: quality and co-ordination. "If you
Page 43 and 44: The Aframax Eos undertook a voyage
Page 45 and 46: Anthony Veder’s innovative hybrid
Page 47 and 48: of the vessels are on long term con
Page 49 and 50: TECHNOLOGY - GAS DETECTION Ensure t
Page 51 and 52: With a two-year lifespan and guaran
Page 53 and 54: FOUR IN A SERIES on operating chemi
Page 55 and 56: take up to 12 to 24 hours to evapor
Page 57 and 58: Enraf Holding consisted of six grou
Page 59 and 60:
TECHNOLOGY - TANK CLEANING The Scie
Page 61 and 62:
not specific and does not tell the
Page 63 and 64:
Alphatron Marine will be presenting
Page 66 and 67:
SMM PREVIEW Furuno will be introduc
Page 68 and 69:
SMM PREVIEW Around 37 Dutch compani
Page 70 and 71:
SMM PREVIEW Tamrotor will be showin
Page 72:
DETAIL - FOR US IT’S NATURAL OUR
show all

Features: - Tanker Operator

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?