China plans to ask the US to lift sanctions against the Dalian units of China COSCO Shipping Corp. during trade negotiations that started earlier today in Washington. Four other Chinese entities were also sanctioned last month along with COSCO but it is unclear if the Chinese delegation plans to seek relief for those companies.
Nearly 300 oil tankers globally have been placed off limits as companies fear violating US sanctions against Iran and Venezuela, driving freight rates to new highs. Day rates for VLCC’s are rising rapidly toward the $200,000 per day threshold and some have already fixed at a much higher level. The Tankers International pool reported on Oct. 11 that the 2012-built VLCC Ingrid has just been booked at the equivalent of $301,219 per day (on the basis of 45.4 days). The percentage of the VLCC transport cost to cargo value is now quadruple what it was one year ago – but there still appears to be plenty more room for rates to run. US-listed tanker stocks are now surging upward in response.