Tanker Rate Hike from Hurricane Aftermath Short-Lived

Illustration; Image Courtesy: Odfjell

The spike in freight rates for product tankers in the aftermath of the Hurricane Harvey is expected to be short-lived.

Product tankers saw a 35-40 percent lift in spot rates since the hurricane made landfall on Texas on August 25, shutting down refineries.

The tanker industry is taking advantage from the initial uncertainty caused by the hurricane’s impact, however, the freight rate increase will be a short-term thing, as explained by BIMCO’s Chief Analyst Peter Sand.

It is projected that it will take from two to four weeks for the oil refineries in Texas to resume operations, providing a window of opportunity for owners to avail of the market uncertainty and find work for their available tonnage.

According to Sand, owners with open tonnage in the Atlantic Basin should be able to benefit from this situation.

“Although freight rates significantly increased on the back of the tropical storm, by Friday 1st Sept, when ports started to partly operate again, rates had leveled off but were still very satisfying,” Intermodal Shipbrokers said in a weekly report.

Based on the latest update from the US Energy Department from September 10, five refineries in the Gulf Coast region were shut down, while six refineries are in the process of restarting operations, which may take up to several weeks, depending on whether any damage is found during restart.

What is more, fuel shortage stemming from the natural disaster has prompted the Secretary of Homeland Security to waive the Jones Act requirements for shipping fuel to Florida, as reported by White House Homeland Security Adviser Tom Bossert.

This will allow foreign flag vessels to bring in fuel to help with fuel shortages amid the recovery from Hurricane Irma in Florida.

Ports in eight port sectors in the Caribbean, Florida, North Carolina, and South Caroline are either closed or open with restrictions.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >