EMEA News
"Letter of Comfort" Requirements Causing Nigeria Tanker Rate Hike
Following a mid-September move by state-owned Nigerian National Petroleum Corp. (NNPC) asking shipowners to sign a so-called "letter of comfort" promising that their vessels would not be used for illegal activities, at least two shipowners have requested a premium on freight rates for loading crude oil out of the country, Platts reports.
The SCF Altai, owned by Sovcomflot, and Delta Kanaris, a Suezmax chartered by Petróleo Brasileiro S.A. (Petrobras) and owned by Delta Tankers Ltd (Delta Tankers), are reported to have been charging a premium of up to Worldscale 10 for loading in Nigeria.
Sovcomflot was said to have declined to comment on its specific obligations under the letter of comfort, but said the matter was still under discussion and may not be precedent setting.
As Ship & Bunker has previously reported, it has been suggested that the letter requires shipowners to take on responsibility outside of their control, and as such one shipowner expressed little surprise that signing it would therefore attract a rate premium.
"Generally, there is still no straight answer for ships loading from Nigeria," they said.
"It varies from one shipping company to another whether he wishes to sign it or not...However, if a shipowner is signing the NNPC's LOC (letter of comfort), he is liable for many risks and therefore he will charge a premium."
However different sources have indicated that "the letter doesn't seem to be asking more than the Nigerian law requests, which shipowners have to abide by when they go to Nigeria."
A separate source commented that the premium was not widespread, "but some owners are using the issue to make gains."
In September, despite reports that Nigeria had lifted a ban on around 100 tankers from operating in its territorial waters, the International Association of Independent Tanker Owners (INTERTANKO) recommended caution for any tanker owners and operators intending to proceed with trade to the country.
