August 3, 2011 [Bloomberg] - Simon Newman, head of tanker research at ICAP Shipping in London, said there has been a 77 percent drop in the number of supertankers used for storing crude oil compared with two years earlier.
Six very large crude carriers, each capable of hauling 2 million barrels of oil, were used for floating storage by the end of July this year, down from 26 in 2009, Newman said. The number of VLCCs storing gasoil fell to zero from four, he said today by e-mail.
On the demand for floating storage:
“Owners will no doubt be willing to store given the current weak rates, but if the banks and traders can’t make floating storage work” then owners don’t have the option of using their vessels for the trade, he said, referring to rates to hire the vessels.
On the glut of supertankers that has depressed hire rates:
“Six vessels out of the market won’t make much difference.”
