Clean product tankers are being used by traders as floating storage terminals just outside ARA ports as distillate capacity utilization remains high.
According to Genscape high storage levels at non-refinery storage facilities in the ARA have remained at 80 to 85% for distillates. This in turn has prompted some traders to use tankers moored just outside ARA ports or at offshore locations elsewhere in Europe, either close to some of the main load points or near key deviation points such as Gibraltar.
According to Colin Halling, senior analyst, EMEA oil at Genscape, some recent reports have suggested that as much as 640,000 metric tonnes of gasoil and ultra-low sulphur diesel are being stored in these oil tankers.
A gasoil vessel, the Captain Paris, left the export refinery of Ruwais in the Mideast Gulf on September 27, 2015. The ship has continued to float at anchorage just outside Rotterdam since arriving in the English Channel on December 9, 2015 with a laden draft.
This is one of several vessels being used for floating storage.
In January 2015, floating storage was back in favour globally with reports that rates for a 12-month ship charter had doubled, however, unlike the super-contango in 2009, only 20 million barrels was stored at sea.