Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: Tallguy
Tell them to look at a map. Bulk commodities tend to be shipped to the nearest consumer — that’s the reason much of Alaska’s oil goes to Japan

I suggest you look at a map. Japan is about twice as far away from Valdez as our West Coast Refineries.


34 posted on 04/16/2008 8:55:01 AM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 30 | View Replies ]


To: thackney

If you’re Japanese which is closer? Alaska or Kuwait?


38 posted on 04/16/2008 9:02:18 AM PDT by Tallguy (Tagline is offline till something better comes along...)
[ Post Reply | Private Reply | To 34 | View Replies ]

To: thackney

Distance is really not that important in the crude shipping business.
You must consider that a year 2000 built 200 000 TDW VLCC procured from a Korean yard would have cost ~USD120M with a lead time of 1 year, whilst a similar Jones Act compliant ship from an American yard would cost ~USD300M with lead time of ~3 years. One of the main costs of tanker ownership/operation is capital amortisation, and you may readily see that the second option would substantially raise the dayrate/WS.
Further, an American crew would cost at least 4 to 5 times that of a Filipino crew with Japanese or Korean officers.


44 posted on 04/16/2008 9:18:41 AM PDT by punchamullah
[ Post Reply | Private Reply | To 34 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson