Gunvor’s shipping boss Andrew Jamieson has described high tanker freight rates as a “pain” but believes they are here to stay.
That is why the giant trader and shipowner has been taking in more vessels on period charters, he told an energy conference in Houston.
Reuters cited the co-head of Gunvor’s shipping division Clearlake Shipping as saying Russian oil trade disruption and reroutings away from the Red Sea have caused a “perfect storm” for the tanker sector.
And insurance costs have spiked for ships still using the Red Sea to save time.
“There are not enough vessels,” the Clearlake executive said.
“The record time-chartering rates are a pain,” he added.
Clearlake now has more than 100 vessels on time-charter contracts, compared with just “a few” before 2020, Jamieson told the conference.
“We don’t like doing it, but we think rates are here to stay,” Jamieson added.
Shipowners have started turning to newbuilding orders to ease the vessel shortage situation, the Clearlake boss said.
But these will not be delivered for at least two years.
Jamieson sees about 100 aframaxes joining the global fleet over the next three years, while around 25 VLCCs are due in 2027.
Ships avoiding the Red Sea have meant an increase in fuel consumption of 100,000 barrels per day due to longer routes, Vitol CEO Russel Hardy told the conference.
They have also added 3% to the distance travelled by the global fleet, he said.
