Thursday, April 27 2000
Teekay says it benefited from a significant increase in Aframax charter rates during the past three months as tanker demand increased, while tanker supply declined slightly.
The International Energy Agency estimated that global crude oil consumption, an indicator of tanker demand, averaged 76.2 million barrels per day, down 0.1% from the quarter ended March 31, 1999 but is forecasting that oil consumption during the remainder of 2000 will be 2.8% higher than in the corresponding period in 1999.
Teekay notes that the size of the world tanker and OBOfleet declined to 301.2 million deadweight tonnes (``mdwt'') at the end of the quarter, down 0.2% from last quarter, as the pace of scrapping exceeded newbuilding deliveries. Deliveries of tanker newbuildings during the quarter totalled 5.6 mdwt, down from 5.7 mdwt in the previous quarter, while scrapping totalled 6.5 mdwt despite a strong tanker market, compared to 7.0 mdwt scrapped in the previous quarter.
The world tanker and OBO orderbook measured 39.5 mdwt at March 31, 2000, representing 13.1% of the total world tanker and OBO fleet. The Aframax tanker orderbook declined from 37 vessels last quarter to 36 vessels as of March 31, 2000, or from 5.9% to 5.8% of the world Aframax fleet (including OBOs).
The following is a summary of the Teekay fleet as of this date:
Type Number Dwt Double-hull or double-sided Aframaxes (1): 38 3,765,600 Single-hull Aframaxes: 18 1,828,300 Ore/Bulk/Oil Carriers (2): 8 625,900 Time-chartered-in Aframaxes: 5 514,000 Other size tankers (3): 5 670,200 Total: 74 7,404,000 (1) Includes one 50%-owned Aframax tanker. (2) Includes one 67%-owned OBO carrier & one 52%-owned OBO carrier. (3) Includes two 50%-owned Suezmax tankers.
Meantime, the most recent orders added
seven 9RTA96C and five 12RTA96C engines to the orderbook. The
nine-cylinder engines are for Reederei Claus-Peter Offen's recent
order of 4.700 TEU container vessels at Samsung Heavy Industries
Co Ltd, while the twelve-cylinder engines will power a series
of five 6200 TEU post-Panamax container ships contracted by NYK
Line also at Samsung. The 9RTA96C has an output of 67,230 bhp
(49 410 kW), while the 12RTA96C engine gives 89,640 bhp (65 880
kW) at 100 rev/min. All RTA96C engines are built under licence
by Wärtsilä NSD's largest licensees: Diesel United
Ltd (Japan), Hyundai Heavy Industries Co Ltd (South Korea), and
HSD Engine Co Ltd (South Korea).
The Sulzer RTA96C engines in service and on order now comprise:
There are already eleven RTA96C engines
in service with aggregate running time totaling some 100 000
hours. The first RTA96C, an 11-cylinder engine, went into service
in October 1997 and has since accumulated almost 16,000 running
hours. The most powerful engines in operation are the four 12RTA96C
engines each of 89.640 bhp (65 880 kW) which entered service
from June 1998
Commission renews block exemption allowingconsortium agreements
The Commission notes that "it is common for shipping companies to conclude consortia agreements with a view to provide a joint liner shipping service through the coordination of sailing timetables, the exchange and sale of space on vessels and the pooling of vessels and port facilities."
In 1995 the Commission adopted a block exemption Regulation covering such consortium agreements. Acting on a proposal from Mario Monti, Commissioner for Competition, the Commission has now adopted a Regulation renewing the block exemption for a further period of five years, "confirming its favorable attitude towards liner shipping consortia."
The Commission says that consortia agreements usually allow shipping lines to rationalize their activities and achieve economies of scale, thus improving the productivity and quality of liner shipping services. Provided consortia are faced with sufficient competition, those advantages benefit exporting firms, the customers of shipping lines. "The block exemption therefore only automatically covers consortia which have a market share of below 30% or 35% on any market on which they operate, depending on whether they are inside or outside a so-called liner conference."
A consortium that exceeds the market share limits would not necessarily be unlawful, but would have to be examined for compatibility with the competition rules on an individual basis.
The block exemption forbids price-fixing. It covers, however, both consortia operating within a liner conference and consortia operating outside such conferences. Under a separate block exemption, members of a liner conference may fix maritime transport rates provided that they fulfil certain conditions and meet certain obligations.
The consortium block exemption applies
only to consortia providing international liner shipping services
to or from one or more Community ports. The service must be exclusively
for the carriage of cargo; the exemption does not cover the transport
contract for NORSHIPCO
RFP: Full-Scale design studies of ballast