COURSE SUMMARY

This intensive two-day training event covers key issues – economic, financial, contractual, environmental and legislative – and their impact on contract options, investment strategies, logistics and operating tactics surrounding the transport of crude oil and petroleum products. The course is designed to equip participants with the necessary tools to evaluate the risks and opportunities in today’s tough shipping markets.

While the seaborne imports of crude oil and petroleum products and exports of petroleum products into and out of N America are impacted by trends in the international tanker markets, this course will provide additional focus on specific issues relating to the shipping sector within the region.

WHO SHOULD ATTEND?

Those engaged in the supply, trading and risk management of oil and petroleum products business; commercial and operations departments of ship-owning companies; planning and financial departments of shipping companies and oil transportation divisions; banks and financial institutions involved in oil tanker finance; accounting and legal firms dealing with energy transportation issues; oil trading and distribution companies; management personnel who are new to the transportation sector.

COURSE CONTENTS

Structure of the (Crude Oil) Tanker, Petroleum Products and Chemical Markets

• How the markets operate
• Trends in ownership and chartering specific to North America
• The role of different types of companies, including shipbrokers
• Ship types and their physical characteristics

Charter Evaluation

• Types of chartering arrangements
• Worldscale, AFRA and freight futures
• Voyage estimating

Logistics and Operating Strategies

• Transportation economics and evaluation of logistics options
• Trans-shipment, lightering and the use of tankers as floating storage

Tanker Market Fundamentals and Market Influences

• Tanker demand and supply
• Trends in owner operating costs and charter revenue
• Rate formation
• The dynamics of short, medium and long-term charter rates
• Assessing the impact of external market factors

Investment in Tankers

• New construction, second-hand and scrap prices and their relationship to the charter markets
• Impact of environmental and safety legislation on tanker construction

Overview of the Commercial and Legal Aspects of Charter Parties

• Demurrage, bunker escalation and other key clauses
• The relative merits of different types of charter party
• The requirements of the charterer
• Commercial, legal and other consideration, including arbitration
• Documentation

Negotiating Contracts

• Successful negotiating
• Risks and rewards
• Stages of negotiation
• Tactics and considerations

Tanker Coverage Strategy/Contract Portfolios

• Oil company and ship owner perspectives
• Calculation of oil company tonnage requirements and the development of a ‘coverage strategy’
• Commercial, contractual, legislative, environmental and qualitative issues associated with controlling transportation
• Project implementation

Syndicate Work

• Participants will undertake exercises covering transportation economics, the economics of life extension, demurrage and arbitration. This work is then used in case studies in which the syndicates compete to develop optimum strategies for tanker coverage and contract portfolios.