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Morgan Stanley Said to Ship Jet Fuel Across the Biggest Ocean
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By Alaric Nightingale and Moming Zhou Jan. 28 (Bloomberg) -- Morgan Stanley, which charters more oil-product tankers than Chevron Corp., is shipping a jet-fuel cargo 11,500 miles across the world’s biggest ocean to Florida, two people familiar with the matter said. The bank hired the Torm Carina to carry the fuel to Port Everglades, according to the people. The vessel was previously in South Korea and Taiwan, shiptracking data show. It can carry about a fifth of all the jet fuel imported into the U.S. East Coast from South Korea, Taiwan and China last year. Hugh Fraser, a spokesman for Morgan Stanley in London, declined to comment. “Considering the logistics from North Asia to Florida on the eastern side, it’s an incredible move,” Victor Shum, a senior principal at energy consultants Purvin & Gertz Inc. in Singapore, said by phone. The trade is profitable so long as U.S. East Coast prices exceed those in Asia and freight costs, Shum said today. Morgan Stanley is the world’s ninth-largest charterer of oil-product tankers, which deliver commodities such as gasoline, jet fuel and heating oil. It hired three more vessels than the 114 chartered by San Ramon, California-based Chevron in 2009, according to data from shipbroker Poten & Partners. The Torm Carina will dock on Jan. 31 and is carrying jet fuel, according to Port Everglades’ daily ship schedule. The vessel normally carries 289,000-barrel cargoes, previous bookings compiled by Clarkson Research Services Ltd. show. The ship is designed to sit at a maximum of 12.2 meters (40 feet) deep in the water and is presently at 11.7 meters, according to Lloyd’s Register-Fairplay data on Bloomberg. That implies the vessel is almost full of cargo. Panama Canal It’s a 10,000-nautical-mile (11,500 miles) journey from Taiwan to Florida via the Pacific Ocean, according to World-register.net. The vessel navigated the Panama Canal yesterday, ship-tracking data show. Imports of jet fuel from China and Taiwan into the U.S. East Coast totaled 483,000 barrels last year, with the last reported cargoes in September, according to data from the U.S. Energy Information Administration released Dec. 30. Jet-fuel imports from South Korea into the same area totaled 760,000 barrels, and the last cargo was in October, the data show. Morgan Stanley, the second-largest U.S. securities firm, owns at least one terminal in Port Everglades, capable of storing 482,000 barrels, according to data compiled by Bloomberg. It has 46 oil terminals across the U.S., the data show. The New York-based bank trades energy and metals, including physical commodities, derivatives and futures, according to its Web site. To contact the reporters on this story: Alaric Nightingale in London at Anightingal1@bloomberg.net; Moming Zhou in New York at Mzhou29@ bloomberg.net. Last Updated: January 28, 2010 09:02 EST
1/29/2010 10:33:44 AM