Nov. 25 (Bloomberg) -- Oil shipping costs may extend this year's 76 percent rout as shrinking energy demand and a global recession eclipse disruptions caused by pirates off east Africa capturing their largest-ever freighter.
Tanker rates next month are about 7 percent lower than yesterday's level on the Persian Gulf to Japan route, according to derivative contracts called Forward Freight Agreements that trade privately among banks, brokers, hedge funds and shipping companies. Transport costs plunged this year as OPEC curtailed production, lowering demand for vessels.
Somalian pirates seized their biggest-ever prize on Nov. 15, a ship loaded with 2 million barrels of crude, worth a combined $250 million. The hijacking prompted Frontline Ltd., the world's biggest tanker operator, and owners controlling almost a quarter of the fleet to say they may avoid the region, lengthening journeys and effectively reducing ship supplies.
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