Be Ready to Pounce
The crude oil trading market is a mature market and the crude oil price has experienced many periods of fluctuation and stability, some quite unexpected. The political machinations which recently activated such a dramatic fall in the price have probably run their course, so future predictions are arguably less cloudy.
It is equally predictable that the large quantities of crude oil purchased and put into storage, whilst awaiting a sufficient rise in price, will gradually be let back onto the market to take advantage of this rise. Precise fluctuations are not easy to foresee yet the crude oil tanker owners must be ready to pounce at a moment’s notice once cargoes become available.
All the time there are more ships than cargoes, a situation commonly experienced by the crude oil trade, charterers are able to become highly selective about the companies and ships they charter. So in order to attract the most lucrative charter rates, tanker owners need to ensure they are ahead of the competition. Each detail of management and operation has to meet the charterers’ ever increasing scrutiny.
Few cargo ship types come under as much commercial scrutiny as oil tankers and vetting and management regimes become ever more detailed. It is well known that ships fail to gain charters on the basis of perceived compliance and management weaknesses, rather than ship or equipment specific deficiencies. Therefore the operation and management of tankers available for charter must be of the highest standard in order to compete with their industry peers. As tanker owners contemplate which of their ships to take out of lay-up or from their storage function, these issues will need detailed attention.
The experience and knowledge of those previously involved in vetting, as inspector as well as charterers’ and owners’ representation will be of great value during such periods of scrutiny. Owners must be ready to prepare their tankers for charter promptly, safely and efficiently. Regulatory compliance will be the minimum level acceptable and charterers will be looking for more evidence of high quality management and operation of their tankers under charter.
PetroKnowledge’s comprehensive 5 day training course entitled ‘Crude Oil Tanker Cargo Operations Best Practices’, will help you understand day-to-day practices, risks and challenges, future opportunities, advanced technical tools in business and much more. Join the training workshop and gain valuable insights on crude oil cargo operations and practices.
