Galbraith’s Predicts Growth in Demand for Suezmax Tankers

Tuesday, October 17, 2006
Shipbroker and consultant Galbraith's Ltd says that demand for Suezmax tankers is expected to grow strongly in the next five years in line with large-scale expansion of crude oil exports in three of the four main Suezmax markets. In a new report on the Suezmax market, Galbraith’s notes that 2006 has seen major investment in tanker newbuildings – not least the Suezmax sector – where an estimated $4.5 billion-worth of new vessels has been ordered. Meanwhile, new oilfields and pipelines are being developed, altering the patterns of world trade.

Galbraith’s notes that West African oil production is rising, and that major growth in exports is also predicted from the Black Sea/Mediterranean region. Growing production from Libya and Algeria will also contribute to Mediterranean export growth. Finally, trade from the Arabian Gulf to both India and China will continue to grow, driven by increases in these countries’ demand and their development of substantial new refinery capacity. The only major Suezmax market that is expected to see falling requirements, says Galbraith’s, is the North Sea, where production is in relatively steep decline. This will, however, lead to an overall increase in tanker demand since refineries in north-west Europe – and, to an extent, on the US east coast - will have to source cargoes from more distant regions such as West Africa and the Mediterranean/Black Sea.

Regarding the development of the fleet, the Galbraith’s report explains, “Until the middle of 2006, the Suezmax sector seemed to be under-invested as relatively few orders had been placed for delivery from 2008 onwards, while vessel demand seemed set to grow substantially. Owners were ordering large numbers of VLCCs and Aframaxes in the first half of the year, but the Suezmax sector seemed relatively neglected. However, this situation changed in the third quarter of the year, with shipyards taking firm orders for about fifty vessels.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Pressure Steady on LNG Shipping Rates -Drewry

LNG shipowners will have to wait until 2018 for earnings to improve, when the majority of new US plants are expected to come online, according to the latest edition

Asia Tankers-VLCCs Rates Ease as Tanker Jams Fade

Port congestion eases at Basra and Chinese ports; tanker demand set to expand on lower oil prices. Freight rates for very large crude carriers (VLCCs), hurt by slower-than-usual release of cargo,

ICS Criticises 'Prestige’ Judgement by Spanish Court

At a meeting of the International Oil Pollution Compensation Funds (IOPCF) this week, the International Chamber of Shipping (ICS) has strongly criticised the judgement

Ship Sales

How France Sank Japan's Sub Dream

Ousting of Japan ally PM Abbott opened door to rivals; Tokyo slow to respond to new competitive process. In 2014, a blossoming friendship between Australian

Samsung Heavy Loses $4.6-bln FLNG Order

South Korea’s shipbuilder Samsung Heavy Industries (SHI), the world’s third-largest shipbuilder,  has received a contract termination for three floating liquefied

Japan wants Australian Explaination for Failed Sub Bid

Japan wants Australia to explain why it decided not to pick a Japanese design for a new fleet of submarines choosing instead a proposal from France's DCNS. "The decision was deeply regrettable,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0678 sec (15 req/sec)