Sunday, October 21, 2007
Tomorrow, Sales Taxes - Today, The World
Anyway, this Bloomberg article covers some of the tanker shipping problems. The theory is that the single-hulls were going to come off by being converted to bulk dry, but I don't know where the shipyard capacity is for this right now, and it seems as if some of the lines being sold in mid-Asia are dry carriers. Read the article:
The Bloomberg Tanker Index has risen 19 percent in the past two years, even as freight rates sank 38 percent. The price of marine fuel, the biggest cost for shipowners, has advanced 73 percent to a peak of $446.50 a metric ton and the number of ships available is near a record.There's a lot of important stuff in here.
Falling freight rates and record fuel costs have given shipowners their longest string of losses in five years, according to Citigroup Inc., the third-largest lender to the shipping industry. So-called very large crude carriers, which transport about 2 million barrels, are losing more than $13,000 a day in the market for day-to-day charters. Shipowners are spending more on fuel and debt payments than they collect in rent.
Suezmax vessels, the biggest tankers that can navigate Egypt's Suez canal while full, are losing more than $10,000 a day. Owners of aframaxes, 600,000-barrel carriers that usually haul crude within the same continent, are losing about $13,000 a day, Citigroup estimates.
Oct. 22 (Bloomberg) -- The record increase in oil prices and the unprecedented number of new tankers transporting crude is a stock market crash waiting to happen.
Good grief. We're caught between perfect storms and crashes waiting to happen.
If you look at worldwide commodities, it's time to get uneasy.
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