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VLCC Tanker Trade 1
VLC Tanker Trade
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VLCC Tanker Trade 2
VLCC Tanker Trade
Very Large Crude Carriers (VLCC) are tanks with a capacity of 200 tons and
above dead weight (Alizadeh & Talley, 2011). They are usually used in long-distance
transportation of crude oil from the point Gulf regions and Asia to the United States and
Western Europe through the Cape of Good Hope. The crude oil is then refined at the
destination and either used locally or exported. Oil transportation primarily uses two
methods, pipeline transport or tankers (both and sea). However, for the long voyages, in
areas lacking pipelines, VLCC is the preferred choice since it is economical and
relatively safe (Merikas, Anna, Polemis, & Triantafyllou, 2014). Even in comparison
with other tankers like Aframax, Panamax, Suezmax, and ULCC, the VLCC’s carrying
capacity still makes it cheaper.
Understanding the trend in VLCC tankers trade requires knowledge on the oil
market. Economic or political factors that directly or indirectly affect the oil market have
a direct impact on the VLCC trade (Lun, Hilmola, Goulielmos, Lai, & Cheng, 2013). The
forces of demand and supply in the oil market significantly influence the trends in VLCC
trade. For example, when there is a high demand for oil in Western Europe and the
United the more VLCC tanks are required to facilitate the movement hence rise in
demand. On the other hand, fall in demand for oil and oil products in the global market
also results to decrease in demand of the VLCC tanks (Lun, Hilmola, Goulielmos, Lai, &
Cheng, 2013). In other words, it is only possible to understand the trends in VLCC tanks
market by first analyzing the global oil market.

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VLCC Tanker Trade 1 VLC Tanker Trade Name Course Instructor University City Date VLCC Tanker Trade 2 VLCC Tanker Trade Very Large Crude Carriers (VLCC) are tanks with a capacity of 200 tons and above dead weight (Alizadeh & Talley, 2011). They are usually used in long-distance transportation of crude oil from the point Gulf regions and Asia to the United States and Western Europe through the Cape of Good Hope. The crude oil is then refined at the destination and either used locally or exported. Oil transportation primarily uses two methods, pipeline transport or tankers (both and sea). However, for the long voyages, in areas lacking pipelines, VLCC is the preferred choice since it is economical and relatively safe (Merikas, Anna, Polemis, & Triantafyllou, 2014). Even in comparison with other tankers like Aframax, Panamax, Suezmax, and ULCC, the VLCC’s carrying capacity still makes it cheaper. Understanding the trend in VLCC tankers trade requires knowledge on the oil market. Economic or political factors that directly or indirectly affect the oil market have a direct impact on the VLCC trade (Lun, Hilmola, Goulielmos, Lai, & Cheng, 2013). The forces of demand and supply in the oil market significantly influence the trends in VLCC trade. For example, when there is a high demand for oil in Western Europe and the United the more VLCC tanks are required to facilitate the movement hence rise in demand. On the other hand, fall in demand for oil and oil products in the global ...
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Really useful study material!

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