Oil tankers exist for the sole purpose of moving oil, a major source of energy for the world, from where the it's produced to where it will be consumed. There are mainly two kinds of oil tankers:
1. The oil tankers that carry finished oil products(product tankers)
2. The oil tankers that carry oil in its crude form(crude tankers)
Other than the purpose for which an oil tanker serves, they can also be additionally classified depending on size (from ultra large crude carriers - ULCC to very large crude carriers - VLCC). Another mode of classification are the sea routes they were specifically designed for - Panamax are oil tankers that can pass through the Panama Canal while Suezmax oil tankers can pass through the Suez Canal.
Product Tankers
Some of the finished or refined oil products that product tankers ferry include jet fuel, paraffin, gasoline and diesel. The size of product tankers varies greatly and ranges from a dead weight tonnage (DWT) of 5,000 to 80,000. They transport oil from a refinery to the markets ready for consumption.
Crude Tankers
Compared to product tankers crude tankers are almost always larger in capacity. Some of the largest crude tankers have a capacity of 450,000 DWT while some of the smallest can carry up to 55,000 DWT. They ferry oil from where it's being extracted to a refinery.
How the Oil Tanker business works
Oil tankers are like cabs in that they are hired on a per need basis. This is unlike container ships which can be compared to buses or trains that run on schedule. There are usually three main parties involved in the oil tanker business. This includes the shipowner who is, as the name suggests, the proprietor of the vessel. The shipowner could be an individual or a firm. The charterer on the other hand is the organisation or individual who approaches the shipowner to hire their oil tanker for the purposes of transporting his or her cargo. The other party is the broker who acts as the middleman between the charterer and the shipowner.
Price of an Oil Tanker
The price at which an oil tanker will cost depends on among other factors the vessel's haulage capacity(the higher the capacity the more expensive), the year of manufacture among other factors.
1. The oil tankers that carry finished oil products(product tankers)
2. The oil tankers that carry oil in its crude form(crude tankers)
Other than the purpose for which an oil tanker serves, they can also be additionally classified depending on size (from ultra large crude carriers - ULCC to very large crude carriers - VLCC). Another mode of classification are the sea routes they were specifically designed for - Panamax are oil tankers that can pass through the Panama Canal while Suezmax oil tankers can pass through the Suez Canal.
Product Tankers
Some of the finished or refined oil products that product tankers ferry include jet fuel, paraffin, gasoline and diesel. The size of product tankers varies greatly and ranges from a dead weight tonnage (DWT) of 5,000 to 80,000. They transport oil from a refinery to the markets ready for consumption.
Crude Tankers
Compared to product tankers crude tankers are almost always larger in capacity. Some of the largest crude tankers have a capacity of 450,000 DWT while some of the smallest can carry up to 55,000 DWT. They ferry oil from where it's being extracted to a refinery.
How the Oil Tanker business works
Oil tankers are like cabs in that they are hired on a per need basis. This is unlike container ships which can be compared to buses or trains that run on schedule. There are usually three main parties involved in the oil tanker business. This includes the shipowner who is, as the name suggests, the proprietor of the vessel. The shipowner could be an individual or a firm. The charterer on the other hand is the organisation or individual who approaches the shipowner to hire their oil tanker for the purposes of transporting his or her cargo. The other party is the broker who acts as the middleman between the charterer and the shipowner.
Price of an Oil Tanker
The price at which an oil tanker will cost depends on among other factors the vessel's haulage capacity(the higher the capacity the more expensive), the year of manufacture among other factors.