63
CHAPTER ONE
Developments in Global Markets
In the Mediterranean region there was a similar decrease in freight
rates for small and medium-sized tankers (80,000-85,000 dwt). The
average freight rate in 2012 was 88 WS points, which was 13 points,
or about 13%, lower than in 2011.
It is worth mentioning that year 2012 commenced with freight
rates decline compared with the end of 2011, for many reasons, the
most important of which was the increase in the world scale reference
freight rates effective for the year 2012 as a result of higher prices
for tanker fuels . In addition to the oversupply of tankers, improved
weather conditions and weak demand for transportation
.
In April 2012 crude oil freight rates on the Arabian Gulf ports to
East route registered the highest level, to average 65 points, due to
high demand for tankers to be used as floating storage, then freight
rates started to fluctuate up and down to reach their lowest level in
July, August and September, to average 36 points. That was mainly
due to the abundance of the global tanker fleet tonnage in conjunction
with weak demand for transportation.
In contrast, crude oil freight rates on theArabian Gulf ports toWest
route reached their highest level of 43 WS points in April, then they
began to decline to reach their lowest level in August and October to
average 25 WS points.
A cross the Mediterranean route, freight rates started with bearish
direction, then rose to reach their highest level of 106 WS points in
March. After that they began to fluctuate up and down till reaching
their lowest level of 77 WS points in September and October.
