Photo: Euronav

Euronav: VLCC Order Book Expands

By Aiswarya Lakshmi!!!

The challenging freight market during the third quarter came despite some encouraging signs with active scrapping of vessels returning (nine VLCCs scrapped plus one removed from fleet for FPSO project; six Suezmax scrapped during the third quarter) incentivized by a steel price at near three-year highs, says Euronav NV.
This was supported by continued upgrades to crude oil demand with the IEA raising its forecast for 2017 from 1.2 mbpd to 1.6 mbpd over the course of the third quarter and U.S. crude exports again making further progress to record on average 933k bpd for the third quarter.
However, the VLCC order book continued to expand with 13 new orders placed during the third quarter largely outpacing this re-emergence of sector discipline in scrapping.
The expected seasonal low level of cargoes during the third quarter combined with thirteen new VLCC and fifteen new Suezmax deliveries during the quarter drove freight rates to low levels not seen since the third quarter of 2013 and approaching operating cost break-even levels.
OPEC production cuts have recently been accompanied by more assertive and selective crude export reductions. Combining potential extension of production cuts to the end of 2018 and the recent rise in geopolitical concerns in specific oil producing regions (Kurdistan, Nigeria and Libya), could provide negative headwinds to ongoing crude oil supply.
Paddy Rodgers, CEO of Euronav, said, "Freight rates remained under sustained pressure in both the VLCC and Suezmax sectors during Q3 - particularly in August as seasonally low levels of cargo and new tonnage entering the market combined to drive rates to lowest levels since 2013."
"Whilst there has been an encouraging recent uptick in scrapping activity and crude demand growth continued to see upgrades during the quarter, the delivery schedule of new vessels remains elevated into late 2018. Euronav retains substantial balance sheet capacity and fixed income visibility to navigate through such a period of lower freight rates and/or to take advantage of expansion opportunities."
So far in the fourth quarter of 2017, the Euronav VLCC fleet operated in the Tankers International Pool has earned about $26,000 and 45 percent of the available days have been fixed. Euronav's Suezmax fleet trading on the spot market has earned about $16,000 per day on average with 56 percent of the available days fixed.
Indian PM Narendra Modi dedicated to the nation the 4th container terminal built at Navi Mumbai. Photo: Nitin Gadkari

Indian PM Narendra Modi Lays Foundation Stone For JNPT Fourth Countainer Terminal

India's biggest container traffic handler Jawaharlal Nehru Port (JNPT) has achieved yet another milestone in its ambitious journey to become a world class maritime hub when the

Tony Boemi, Vice-president, Growth and Development at the Port of Montreal, Christine St-Pierre, Québec Minister of International Relations and La Francophonie, Jordan Reeves, Consul General of Canada, Mumbai, Sandeep Mehta, President of Adani Ports and Special Economic Zone and Dominic Marcotte, Consul and Director of the Québec Government Office in Mumbai. Photo: Montreal Port Authority (MPA)

Mundra Port, Port of Montreal Sign Cooperative Agreement

On a trade mission to India, the Montreal Port Authority (MPA) has signed a Cooperative Agreement with Mundra Port, Gujarat State, north of Mumbai. This agreement aims to

Photo: Hafnia Tankers

Hafnia Tankers Inks Fresh Sale and Leaseback Deal

Denmark-based shipping company Hafnia Tankers has successfully completed a sale and leaseback in the Japanese market through the sale and leaseback of its 2010 built LR1 tanker

Mark III system's original design. Photo: GTT

GTT Bags Order for Three LNG Carriers, One Bunkering Vessel

GTT announces it has received several orders, since the beginning of the year, for the equipment of three LNG Carriers (LNGCs) and one bunkering vessel.

Philly Shipyard aerial view Photo: Philly Shipyard

Philly Shipyard Order Backlog Touches USD 187.7 mln

As of 31 December 2017, Philly Shipyard had an order backlog of USD 187.7 million. The contract with Matson (Hulls 029-030) provides for shipbuilding activity with delivery

Photo : Samsung Heavy Industries Co. Ltd. Pangyo R&D Center

Samsung Heavy Industries Bags USD 91.47mln Newbuild Order

Samsung Heavy Industries (SHI) swept 1 trillion KRW (USD 91.47mln) worth orders, including an order from an Asian owner to build eight 12,000TEU containerships for around 820