Stocks that Float: TANKERS & DRY BULK SHIPPERS

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Text of P.F. Bassoe's weekly tanker report: Week 42

Tanker chartering Crude
Market comments

A familiar face returned to the market this week; Volatility.
Owners, having spent the last few weeks way back on the
defense, seemed to have huddled together and collectively
and dug their heels in. Helped by a solid increase in market
activity, they got what they wanted; A broad-based increase
in rates. The focus in the VLCC market has been on the
single hulls, which have seen the biggest increase in rates
and for once are in shorter supply than their double hull
brethren. One may say that an increase in WS-rates was
long overdue as bunker prices have followed the spectacular
rise in crude oil prices thereby cutting heavily into owners'
bottom-line. The short-term outlook of course depends on
how well the activity
can be sustained; There is still an
overhang of tonnage although not as wide as in recent
weeks. The broad-based increase in activity across all
segments may be an indication that winter demand finally
has arrived in the freight market and that Opec's statement
this week that the oil market was "well supplied" may not be
fully shared by charterers who were a lot more eager to
secure tonnage.