Ship-to-ship transfers resume in GOM after storm

Ship-to-ship transfers of crude, refined products and other commodities off the Texas coast resumed Tuesday after Hurricane Beryl postponed operations on Saturday.

The US National Weather Service (NWS) forecast workable conditions with winds of 5-10 knots (6-12 mph) for the remainder of the week off the Texas coast from Corpus Christi to Beaumont after Hurricane Beryl brought gusts of up to 95 mph on Sunday and Monday.

Ship-to-ship transfers, also referred to as lighterings and reverse lighterings, typically are postponed when sustained winds exceed 25 mph.

Due to draft restrictions at ports in Texas, ship-to-ship transfers are required to fully load 2mn bl very large crude carriers (VLCCs). The transfer typically is from an Aframax or Suezmax at designated zones near Corpus Christi, Galveston and Beaumont-Port Arthur.

Prolonged delays can prevent crude tanker tonnage from becoming available and exert upward pressure on freight rates, while also adding to demurrage fees.

By Tray Swanson