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 Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Kongsberg Contracted to Support FLNG Conversion

Kongsberg Maritime secures position in the LNG market with electrical and automation contract for Golar Hilli FLNG   Keppel Shipyard in Singapore and Black & Veatch in the U.

US Oil Contango Vanishing as Supply Glut Shifts Abroad

The U.S. oil market is on the brink of returning to a more bullish footing known as backwardation for the first time in six months, with the discount for prompt

New Power Optimization Solution for LNG Carriers

NAPA and DSME launch tailored NAPA-DSME Power Solution for LNG carriers; leading LNG carrier shipyard offers specialized performance monitoring solution   South Korean shipbuilder,

Ship Sales

Rieber offloads Polar Prince

GC Rieber Shipping has entered into an agreement to sell subsea vessel "Polar Prince", which the company had built in 1999.   The transaction gives GC Rieber

NordLB Back to Profit

Although the crisis is not over in all segments, Germany's second-largest marine lender, Nord LB, said its shipping loan portfolio turned a corner in the first

Navios to Expand Fleet with Two VLCCs

Monaco-based tanker owner and operator Navios Maritime Midstream Partners (NAP) plans to launch syndication of a USD 205 million Term Loan B to finance the purchase

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority Salvage Shipbuilding / Vessel Construction Winch
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: 0.1053 sec (9 req/sec)