Aframax Charterers Say Size Does Matter

Charterers are benefiting from the increased size of modern Aframax tankers by not having to pay a premium for the extra capacity, tanker owners say. "Analysis of some 180 time-charter fixtures from 1996 onwards reveals no extra rate paid for the additional carrying capacity of the newer vessels," owners organization Intertanko said in a market report. Spot fixtures also showed no trend to reward the larger ships. Aframax tankers have increased to a standard 107,000 dwt size for vessels built in the last four years, from about 95,000 dwt between 1998-1995 and 87,000 dwt previously. Charterers were in some cases taking advantage of the extra space by filling up at half the agreed rate, the owners said. The modern size ships were developed to cater for expansion in the Asia-Pacific basin trade in the mid-1990s, but charterers in the Caribbean, North Sea and Mediterranean preferred smaller vessels, Intertanko said. Unless owners could utilize the extra capacity on 60-70 percent of voyages the added expense of buying and operating the larger Aframaxes was not justified. In high cost port areas such as the North Sea and Mediterranean the biggest ships could incur a $700-1,900 a day penalty compared with the 95,000 dwt class.