Spain detains tanker Aldan for oil spill

Market: Freight
16/06/21

The Spanish government has detained an oil tanker for allegedly spilling a large quantity of hydrocarbons in the Atlantic off the Canary Islands. The Aldan's most recent port of call may have been in Venezuela.

Spain's transport ministry Mitma said the Liberia-flagged Aldan is being held in the port of Almeria after a spill that spread across a 55km² area.

"The ship will remain detained until its managers proceed to deposit the fixed bond," Mitma said. "Given the seriousness of the events, they could face one of the highest sanctions imposed so far."

The Aldan's ultimate owner is probably Muhit Maritime FZE, which is headquartered in the Jebel Ali Free Zone, UAE, according to IMO registration documents.

It is unclear what the tanker was carrying. Last month it loaded 150,000 bl of gasoline on behalf of Switzerland-based ES Euro Shipping from Trinidad's state-owned Paria Fuel Trading, and was bound for Aruba. But multiple shipping sources said that it instead entered Venezuelan waters. Venezeula is suffering an acute gasoline shortage. If the Aldan did call at a Venezuelan port, there is a possibility it could be carrying that country's heavy crude or fuel oil.

Oil trade with Venezuela brings acute political sensitivities, because of US sanctions that were imposed by Washington in January 2019. Most of Venezuela's crude exports end up in China's Shandong province, home to much of thatg country's independent refining sector, but even this could be shut off by Beijing's recent imposition of a new import tax.

By John Ollett

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18/12/24

US Army Corps proposes new Illinois River lock

Houston, 18 December (Argus) — The US Army Corps of Engineers (Corps) has proposed a new lock to replace the LaGrange Lock and Dam (L&D) near Beardstown, Illinois, as part of the Navigation and Ecosystem Sustainability Program (NESP). The project would be the first new lock for NESP, a program that invests in infrastructure along the Mississippi and Illinois rivers. The new 1,200ft proposed LaGrange Lock would allow for passage of more barges in a single lockage, instead of having to split the tow in two with the current 600ft LaGrange Lock. At the moment, most tows trying to pass through the LaGrange lock experience multiple hour delays. The new LaGrange lock would have an estimated cost of $20mn, with a construction timeline of five years. The project area would be located on the west bank of the Illinois River near the 85-year old LaGrange L&D, encompassing 425 acres. Real estate acquisition, design plans and contractors are already in place, said the Corps. The current LaGrange lock would remain in operation and become an auxiliary chamber. The Corps opened the upcoming project to public comments on 11 December and will close on 3 January. NESP has four other projects along the Mississippi River. Another full lock construction project is anticipated for Lock and Dam 25. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Alabama lock expected to reopen late April

18/12/24

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18/12/24

Alabama lock expected to reopen late April

Houston, 18 December (Argus) — The main chamber of the Wilson Lock in Alabama along the Tennessee River is tentatively scheduled to reopen in four months, according to the US Army Corps of Engineers (Corps). The Corps expects to finish phase two of dewatering repairs on the lock on 20 April, after which navigation can resume through the main chamber of the lock. The timeline for reopening may shift depending on final assessments, the Corps said. Delays at the lock average around 12 days through the auxiliary chamber, according to the Lock Status Report by the Corps. Delays at the lock should wane during year-end holidays but pick up as spring approaches, barge carriers said. The main chamber of the Wilson Lock will have been closed for nearly seven months by the April reopening after closing on 25 September . By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Viewpoint: European tanker rates meander into 2025

18/12/24

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18/12/24

Viewpoint: European tanker rates meander into 2025

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Alabama lock to remain closed until spring

17/12/24

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17/12/24

Alabama lock to remain closed until spring

Houston, 17 December (Argus) — The US Army Corps of Engineers (Corps) has determined that the main chamber of the Wilson Lock on the Tennessee River near Florence, Alabama, will remain closed until spring 2025 as repairs continue. The Wilson Lock, the first lock on the Tennessee River, closed on 25 September after cracks in the lock gates on both the land and river sides were discovered. The main lock was closed to prevent further damage in the main chamber, although the auxiliary chamber was kept open for navigation. The Corps had been eyeing an earlier opening date for the main chamber since the start of November. Although months of repairs have taken place, the Corps resolved to keep the main chamber closed to preserve the lock and maintain personnel safety. The Corps, in partnership with the Tennessee Valley Authority (TVA), is still assessing the root cause of the cracking. A second de-watering of the gate is scheduled for the first three months of 2025 to repairs. No official date has been set for the lock reopening, although some barge carriers have heard of a late April opening date. A regular 15 barge tow has endured 5-6 days of delay through the lock on average, according to carriers. The Corps' Lock Status Report on the Wilson Lock reported a nearly two-week delay for tows navigating through the lock. This has been costly for shippers by forcing them to pay delay fees. Wilson Lock is the second lock in Alabama to undergo a lengthy closure this year. Most lock and dams along the US river system are over 70 years old, likely resulting in more closures in the coming year. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Viewpoint: Lower demand to weigh on VLCC market

17/12/24

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17/12/24

Viewpoint: Lower demand to weigh on VLCC market

London, 17 December (Argus) — The VLCC tanker market is facing downside risk moving into 2025 — after a lacklustre fourth quarter of 2024 — as a result of shrinking Chinese demand and the continuation of the Opec+ crude production cuts. Opec+ has delayed the unwinding of 2.2mn b/d cut once again to April 2025, and this may be pushed further as it "can be paused or reversed subject to market conditions". This would contribute to keep crude tanker demand and rates under pressure in 2025, especially as the Opec+ group will also keep in place two other sets of cuts by an additional year to the end of 2026 . VLCC rates in 2024 have also been under significant pressure in the second half of the year because of a slowdown in Chinese oil demand. China is the key destination for VLCCs. It accounted for nearly 40pc of all VLCC voyages in 2024, with Japan and South Korea accounting for another 20pc. The IEA has kept its oil demand growth for China unchanged at 150,000 b/d for 2024. This is far below the 710,000 b/d it was forecasting in January 2024. And this trend is likely to continue in 2025, being partly the result of an increased uptake of electric vehicles, LNG-powered trucks and high-speed rail, according to the IEA. China has also cut export tax rebates on oil products to 9pc from the current 13pc, effective 1 December. This may lead to a decrease in Chinese oil product exports, as players may be discouraged by the VAT rebate cuts and reduce Chinese crude imports, weighing on tanker demand. VLCC rates will receive little support from the newbuild market this year. Tankers deliveries in 2025 are scheduled to be lower, with a 1.2pc increase in overall tanker fleet growth, but ship scrapping rates are slowing down. This should keep tanker availability more or less steady in 2025, but rates could come under pressure from an ageing fleet. The average age of a tanker is now 13.2 years. This increase in vessel ages may lead to further rate discounts — which are typically attached to older tankers. The re-election of Donald Trump as US president could have some impacts on the freight markets heading into 2025, but it is unlikely to offer support to the VLCC segment. Trump has planned to ramp up the US's crude production over the course of his second term. This has brought some market participants to question the extent of the increases and the knock on effects. The US primarily uses Aframaxes and Suezmaxes for crude exports and if the new government's policies lead to an increase in crude exports then the volumes would most likely be carried on tankers in these segments. The US also typically exports more to Europe than to Asia-Pacific, which would also mean a proportional increase in the smaller vessel classes rather than VLCCs. The VLCC market will most likely remain under pressure, particularly early in 2025. And some VLCC shipowners have already started to widen their market scope onto traditionally Suezmax routes from west Africa to Europe to increase earnings. But having VLCCs competing with smaller classes could lead to a more sustained slump in other segments, as it would increase tanker supply on these routes and ultimately weigh on rates. This is because increased competitions for cargoes could lead owners to reduce offers in order to secure work. By Rhys van Dinther Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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