Indian Oil Refiners Issue Tanker Tenders Aimed at Boosting Domestic Shipping

Two of India’s state-owned oil refiners have issued tenders seeking to charter tankers for at least five years while giving preference to Indian companies, tender documents reviewed by Reuters showed, which would boost domestic shipping firms battered by slumping tanker rates.

India’s Ministry of Shipping asked the refiners to issue long-term crude import tenders on a pilot basis and include a right of first refusal for Indian shipping lines, a government source familiar with the matt .. The shift to the five-year contracts would give millions of dollars in tanker contracts to the Indian carriers, the source said.

This would help companies like Shipping Corp of India (SCI), Mercator Ltd, Great Eastern Shipping Co and Essar ShippingBSE 0.93 %. The global tanker industry is grappling with an oversupply of ships that has depressed rates, with the benchmark Middle East to Japan route for Very Large Crude Carriers dropping 43 percent since the start of the year. Read More…

Indian Companies, Indian Oil