Are these rumors of US Tankers being laid up with no cargo true or just rumors??
not really a tanker market slow, more like a whole market slow
Most definitely true. At least 4 blue stacks and 3 red stacks confirmed, with rumors of a lot more coming.
When you see US flag tankers tied up to dry bulk loading docks, it’s a bad sign.
Why? People are staying home due to Covid?
It’s a warm winter and due to Covid people are at home to feed the wood stove?
Everyone is driving a Tesla?
Its interesting that the “red stacks” aka Crowley managed State Class Tankers are laid up but no wholly owned Cowley Tankers (aka the ones without “State” in there name). Crowley obviously is looking/ trying to get the best contracts for their owned assets before their managed ones. I wonder if Kinder Morgan aka American Petroleum Tankers will drop Cowley from managing their tankers as they are big competitor in the market place as they own several of there own vessels now. US Shipping was originally supposed to manage the 12 American Petroleum Tanker vessels but they ended up going through bankruptcy when they were being constructed so APT choose Crowley.
The Majors decide which Tankers they want to charter. Crowley has no say.
Crowley is probably more efficient at managing its own ships without an outside owner involved. Probably Crowley is competing on price. Maybe Crowley has a different union or lower cost contracts.
Maybe Crowley figures it’s better to keep its tankers running than to lay them up, but Kinder Morgan figures it’s better to take them out of the market.
It seems that changing the law to allow the export of US crude on foreign ships really screwed up the Jones Act US tanker and ATB trade. Instead of crude being shipped to US refineries, it’s going straight overseas.
What is going on with the other ATB companies?
Majority of Crowley Tankers carry refined products with AMO Officers. It’s pretty simple. The law of Supply and Demand rules here. You can’t tell factories to operate at 25-50% and not expect energy demand to plummet. Also, as a Country we consume way less energy than we produce. Look at the price of gas on a historical basis and the increase use of electric cars.
Covid resulted on less commutes to the office thus less gasoline needed. There is a reason Shell is shutting down one of their Refineries up the River.
Sure wished I shorted Commercial R/E last year at this time!
A mild winter so far, less driving, fewer flights, and less business activity is certainly having an impact.
Right now, Marine Traffic shows three foreign flag and two US tankers in Corpus Christi. Also, one apparently foreign flag tanker SW of Middleton Island bound for Valdez, one unknown outbound tanker, and one apparently US tanker bound for the West Coast.
Prior to the recent (3 years ago?) change in the law to allow exports of crude, we wouldn’t have seen these foreign tankers.
It was more like 6 years ago.
Time flys when you’re having fun!
Overseas Texas City is laid up at Talbot Terminal docks in Newport News. Has been since before Christmas. Not sure how many crew members are aboard.
Key West, Long Beach, and Chinook are laid up in Orange, TX. Top 4 onboard only.