Market of oil transportation by tankers goes through the hard times (PHOTO)

Market of oil transportation by tankers goes through the hard times (PHOTO)

09 December, 23:18 362
Market of oil transportation by tankers goes through the hard times (PHOTO)

The freighter and the operator on a shiping of the KMG Trading AG company Marat Lama Sharif told about the market of oil transportation by tankers, reported.

The Kazakhstan oil is exported by pipelines to the Russian ports of Novorossiysk, Ust-Luga, Primorsk and Taman. And further it is loaded on the tanker of Aframaks and Suyezmaks class. This market of transportation by tankers is also subject to changes against the background of global economy.

For example, in August of this year freight cost in the market of the Black Sea fell to record low level. The tanker of a Aframaks class (average amount of transportation of 90,000 tons of oil) was offered at the WS60.00 level.

Thus, transportation of the Kazakhstan oil from the port of Novorossiysk to port of August on the tanker of Aframaks managed in record-breaking low amount of 300 000 – 365 000 dollars. For example, winter of this year the cost of this route of transportation was three times more expensive, that is at the level of 900 000 – 1 million US dollars.

There were factors which positively influenced business of shipowners this year. For example, drop in oil prices led to drop in prices on bunker fuel (fuel oil and diesel) – the main fuel used by oil tankers in case of navigation.

However many new tankers were over the last 5 years constructed worldwide, and the oil crisis painfully struck shipowners. In the market there is a lot of offer. Demand from freighters affects market transportations more today.

For example, one of the largest South Korean shipping companies Hanjin Shipping Co. Ltd. in August, 2016 reported a bankruptcy, and external management was entered. Hanjin Shipping is included into the TOP of 10 world companies which are engaged in container transports and annually transports more than 100 million tons of freights worldwide. The fleet of the company has about 170 container carrying ships and dry cargo ships.

It is necessary to emphasize that the international market of tanker transportation depends on the level of reliability and uninterruptedness of a route of transport. Delays in the overloaded passages, it is even temporary, can lead to fundamental breach in the energy markets.

Below the description of the most loaded routes on the world card of oil transportation is this.

The Strait of Hormuz connecting the Persian Gulf to the Arabian Sea. The volume of oil transportation is 15,5 million barrels of oil a day. About a third of all sea transportations of oil falls to the share of this passage.

The Strait of Malacca located between Indonesia, Malaysia and Singapore connects the Indian Ocean with the South China Sea and the Pacific Ocean. Malacca is the shortest sea lane between suppliers of the Persian Gulf and the Asian markets. It is the main route on the way to the overloaded Asia. By the last estimates traffic is at the level of 13.6 million oil barrels a day.

The Suez Canal in Egypt is the main route for transit from the Persian Gulf to the countries of the Mediterranean and North America. The Suez Canal allows ship owners to reduce a route by 6,000 nautical miles and not to bend around the African continent. The total amount of inflow of oil through the Suez Canal makes approximately 1.8 million barrels of oil a day.

The Bosphorus strait and Dardanelles (Turkey) divides Asia and Europe and is the main corridor for the Kazakhstan oil. About 2.9 million barrels of oil a day pass through these passages.

The Panama Canal - the important route connecting the Pacific Ocean to the Caribbean Sea and the Atlantic Ocean. Plays a smaller role in world transit of oil, generally because of restrictions on the sizes of tankers while passing. About 0.8 million oil barrels a day its handling capacity. Generally it is used for tankers with oil products.

Summing up the result, it is possible to tell the following, as a result of this crisis in the market there will be most successful ship owners.

The high prices of oil created a boom in a construction of tankers. Now in the industry the effect of a "cold shower" is observed. All players of the market tightened belts and with caution look at oil prices as a key factor of development of an industry in general.

Continuing the subject «Kazakhstan oil»