ECONOMY

Tsakos wants global minimum hire rate

Tsakos Energy Navigation Inc, Greece?s largest publicly traded tanker company, wants oil companies to pay a global minimum hire rate for ships so owners can cover operating expenses and maintain safety spending.

An oversupply of tankers is pushing single-voyage hire rates below operating costs on some routes, jeopardizing safety for the global fleet, President Nikolas Tsakos said in an interview in Athens this week.

He also sits on the executive committee of the International Association of Independent Tanker Owners, whose members control most of the world?s tankers.

?I?ve proposed that oil companies should elect to pay a minimum level that will cover the safe operation of the ship,? Tsakos said, adding that he has started discussing his concerns with the chartering units of the 20 biggest crude producers and traders. ?It will not have to cover any financial cost.? [Bloomberg]