Platts: Aframax Fixtures into Japan up 50% on Higher Oil Demand for Power

“The demand for crude and fuel oil after the devastating March 2011 earthquake and subsequent nuclear outages that hit Japan led to a 50% increase in spot Aframax fixtures into the country last year, compared with 2010, a Platts analysis of shipping fixtures showed January 27. . . . Meanwhile, a research report by shipbrokers Poten & Partners last year mentioned that Japan’s need to augment its power generation using oil, as a result of the nuclear plant outages, would require tankers making long-haul voyages to transport fuel oil into the country. It was more economical to bring in fuel oil supplies via larger VLCCs and Suezmaxes from the Caribbean and UK-Continent into Japan, it added. After converting the larger cargoes into smaller parcels, the Aframax or Panamax vessels would be needed to deliver fuel oil to power plants scattered throughout Japan, the Poten report noted.”