Expansion of Global Oil Tanker Fleet: Faster Than Demand

Oil Tanker (Creative Commons/Danny Cornelissen)

According to ‘Clarkson Research Services Ltd’, a unit of the world’s largest shipbroker, the global oil tanker convoy will undergo an expansion almost three times faster than this year’s demand.

Oil & Tanker Trades Outlook recently published, the expansion of the fleet of 5,600 vessels by 7.5 per cent, will trigger a rise of 2.7 per cent for the demand of oil tanker vessels. The report also said that Panamaxes, the only ship class that has the largest tankers which can navigate the Panama Canal, will shrink against the demand. Number of Panamaxes in service will go down by 1.2 per cent on increased scrapping as demand slip 0.4 per cent, stated Clarkson.

As reported by Clarkson, many tanker-owning companies are ready to survive through quite a few months of adversity, the remainder of the year is showing irregular future for oil demand. Along with adjusting with the lower earnings because of higher fuel costs, main expenses, the owners of tanker companies are now fighting hard to adjust with the largest number of new vessels in 29 years. The data also reveals this year the price of ship fuel, or bunkers, has risen to $624.39 a metric tonne which is almost a 26 per cent rise, stated Clarkson.

In addition to the statement, Clarkson also reported that the demand for Suezmax tankers, each capable of carrying one million barrels of crude, will decrease by 0.9 per cent while the fleet will expand by 4.5 per cent. The number of very large crude carriers that are capable of carrying two million barrels will shoot up by 16 per cent as demand will see the increase of 7.1 per cent, stated the report.

 

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