Frontline administrative president of Norway Oil Tanker Company, Jason indicated that rent of oil tanker was presently too low a few days ago in London, so the company had withdrawn some of the “Wanshui” oil tankers temporarily and appealed other ship-owners to follow, so as to boost rent.

Withdraw Transportation Capacity to Boost Rent
The data of Baltic Exchange Limited of London indicates that daily rent of VLCC for shipping line from the Middle East to Japan has dropped to USD 6538 dollars on Wednesday, which is the lowest since September of last year and still lower than USD 10 thousand dollars, the daily operating cost of VLCC. Jason said that although downtrend of daily rent was slightly stable recently, it was still not an ideal level, so Frontline had arranged a small quantity of its oil tankers to stay at each port and wait for recovery of rent.
Daily rent of VLCC for shipping line from the Middle East to Japan was only 1300 dollars in September of last year; Jason indicated helplessly, “All the ships are with selling price for millions of dollars and carrying cargo with value of 15 billion dollars, why we have to rent the ship in daily rent of 5000 dollars” He thought that it was suitable for owners of oil tanker to take an attitude of wait on the basis of existing rent level.
Requirement of crude oil is weak and more oil tankers return to chartering market subsequent to unloading, so supply of oil tanker is increased constantly. Jason indicates, “At present more oil tankers have no longer been used as offshore oil depot, in the meanwhile, more new oil tankers are delivered to ship-owners, and long-distance transportation of oil tanker is decreased, so abundant oil tankers are available for chartering”. The data of Norway Oslo Shipping Derivatives Exchange (Imarex) at the beginning of this week indicates that 93 VLCCs are available in chartering market, which is the highest quantity in recent period.
Jason appeals that ship-owners should withdraw more oil tankers from market, so as to avoid further downslide of rent. He indicates, “we see that temporary withdrawing of transportation capacity is helpful to improve business environment of container and capesize ships; In fact ship-owners just hope market of oil tanker can be more stable, and there is no need to cause continuous downslide of rent.”