Namura Shipbuilding Ltd. (7014)Foreign cargo used to be priced in U.S. dollars (or in the case of gas, euros), but now the ultimate sources of foreign cargo (foreign nations) are changing the form of payment they demand and prefer: Russia is now invoicing its commodity exports to “non-friendly” nations in ruble, not U.S. dollars or euros, and Saudi Arabia is open to China paying for oil in renminbi. It used to be as simple as “our currency, your problem”. Now it’s “our commodity, your problem”.
Shipping used to be about minimizing the time it takes to get commodities from producers to consumers. Time at sea is a function of sea routes, and different sea routes correspond to different types of vessels. In the case of oil, for example, the three main types of vessels are VLCC, Suezmax, and Aframax vessels. VLCCs (very large crude carriers) carry 2 million barrels and are used for long-haul voyages. There are about 800 VLCCs in the world. Suezmax refers to tankers that are capable of passing through the Suez Canal in a laden condition.
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