Supertanker traffic jam in China pushes up global shipping rates

London

SUPERTANKERS hauling crude to China are contending with increased waiting times to unload as some on-land storage depots reach capacity amid an oil-buying binge by the world's most populous nation.

At least 19 two-million-barrel-capacity ships - known as VLCCs - were stationed off China's coast for two weeks or more, according to vessel-tracking data compiled by Bloomberg on Oct 9. In normal market conditions, most would normally arrive at a port and depart within a day, according to George Los, a New York-based analyst at shipbroker Charles R Weber Co. As delays have increased, benchmark daily earnings for the tankers jumped above US$100,000 this month for the first time since the global recession.