<P> As of 2007, the chartering market is persistently volatile across all tanker sectors . The market is affected by a wide variety of variables such as the supply and demand of oil as well as the supply and demand of oil tankers . Some particular variables include winter temperatures, excess tanker tonnage, supply fluctuations in the Persian Gulf, and interruptions in refinery services . </P> <P> In 2006, the sustained rise in oil prices had only a limited impact on demand . It was a good year across all segments of the tanker market segments, but not as good as 2004 and 2005 . Amidst high oil prices, geopolitical tension, and fears of disruptions to the oil supply, growing demand was the main driving force in the tanker shipping market for the year . As demand grew moderately in the United States and Western Europe, expanding economies such as China fueled exponential growth in demand . Despite these strengths, each of the five tanker freight indices dropped during 2006 . Product tanker demand increased in 2006 due to economic expansion in Asia, especially China and India, however, average time charter equivalent earnings for these ships decreased compared with the two prior years . </P> <P> In 2006, time - charters tended towards long term . Of the time charters executed in that year, 58% were for a period of 24 or more months, 14% were for periods of 12 to 24 months, 4% were from 6 to 12 months, and 24% were for periods of less than 6 months . The average one - year time charter rate for a 5 - year - old tanker of 280,000 metric tons of deadweight varied from $56,500 per day in December 2005 to $53,000 per day in September 2007 with a high of $64,500 per day in September 2006 . </P> <P> The first half of 2007 was relatively strong, but in the second half rates dropped significantly . A sudden rise in oil production, longer transport routes, and slow steaming because of high bunker prices led to a shortage in tonnage towards the end of the year . Overnight, VLCC rates climbed from $20,000 per day to $200--$300,000 per day, and even higher numbers were recorded . </P>

Capacity of aframax ultra large crude carrier in tons