Shipping stocks surged as two of India's state-owned oil refiners have issued tenders seeking to charter tankers for at least five years while giving preference to Indian companies.
Shift to the five-year contracts would give millions of dollars in tanker contracts to the Indian carriers, said a government source.
This would help companies like Shipping Corp of India (SCI) , Mercator Ltd, Great Eastern Shipping Co and Essar Shipping. Global tanker industry is grappling with an oversupply of ships that has depressed rates, with the benchmark Middle East to Japan route for Very Large Crude Carriers dropping 43 per cent since the start of the year.
Shipping Corp of India Ltd shares rose more than 11.3 per cent, Essar Shipping Ltd jumped as much as 6.3 per cent, Mercator Ltd gained as much as 3 per cent, and Great Eastern Shipping Co Ltd climbed 1.7 per cent.
Two Indian state-owned oil refiners issued tenders seeking to charter tankers for at least 5 years while giving preference to Indian companies, which would boost domestic shipping firms battered by slumping tanker rates,