Six New VLCCs Marks the Start of a Busy Delivery Year

By Aiswarya Lakshmi
Thursday, February 11, 2016
Image: ConocoPhillips

 2016 is off to a flying start when it comes to delivering brand new VLCCs from shipyards in South Korea and China to owners and investor across the globe, says a report BIMCO. 

 
The six new VLCCs were delivered in a strong winter market. Having reduced slightly, since the turn of the year, VLCC average earnings currently sit at USD 50,000 per day, in early February.
 
For the full year, an additional 58 VLCCs are scheduled for delivery, but delays and postponements usually decrease that number to a certain degree. Taking that into consideration, BIMCO expects 37 VLCCs to be delivered during the final 11 months of 2016. South Korean shipyards will provide the lion’s share of these newbuilds.
 
Chief Shipping Analyst at BIMCO Peter Sand says: “We have consistently expected 2016 to be a year of rising supply pressure in the crude oil tanker sector. We have seen 6 VLCCs delivered in January, the most since November 2014. BIMCO expects the highest inflow of new VLCC capacity to come into the market during the first and the fourth quarter. The same pattern is projected for suezmax and aframax crude oil tankers.”
 
Supply side growth to outstrip demand side growth: After three years of low but very healthy crude oil tanker fleet growth with an annual average of 1.5% from 2013 to 2015, BIMCO forecasts a fleet growth of 4.3% for the crude oil tankers in 2016. 
 
The biggest share of that growth is set to be within the VLCC segment. Demolition activity in all crude oil tanker segments is foreseen to be fairly low at 5 million DWT, higher than the 1.4 million DWT scrapped in 2015, but lower than in all the years since 2008, buoyed by strong markets.
 
The VLCC fleet currently consists of 654 tankers out of which 72 were built before 2000. Those 72 tankers represents 10.7% of total VLCC capacity. Average year of build for the fleet is 2006.
 
“The rise of crude oil transport capacity- stemming from the introduction of new modern tankers -being delivered into the active fleet is likely to result in a four-year high fleet growth rate in 2016.
 
BIMCO expects crude oil tanker demand in 2016 to grow by 2.5-3.5% depending on developments in the oil price, refinery throughput, global oil supply, geopolitical tensions and inventory changes.
 
Overall, we expect supply side growth to outstrip demand side growth in 2016, resulting in downside pressure on spot and time-charter rates for crude oil tankers”, adds Peter Sand.
 

Maritime Today


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

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

Contracts

Diana Shipping Contract for M/V Oceanis With Nidera

Diana Shipping Inc.  has announced that, through a separate wholly-owned subsidiary, it entered into a time charter contract with Nidera S.P.A., Roma, for one of its Panamax dry bulk vessels,

Norsafe Secures Contract with VARD Group

Norsafe informs it has signed a new contract with VARD Group, and will supply lifeboats complete with davit systems to a series of 15 new vessels.    Topaz Energy

IOMAXIS Awarded $245 Mln Contract to Support NRL

Contract will allow IOMAXIS to provide research, development and technical support to initiatives at the Naval Research Lab   IOMAXIS, provider of technologies

Shipbuilding

Norsafe Secures Contract with VARD Group

Norsafe informs it has signed a new contract with VARD Group, and will supply lifeboats complete with davit systems to a series of 15 new vessels.    Topaz Energy

NASSCO Wins Six Ship U.S. Navy Contract

General Dynamics NASSCO, a subsidiary of General Dynamics (NYSE: GD), won a contract by the U.S. Navy for the detailed design and construction of the next generation of fleet oilers,

Austal Stops Shares Trading

Review of U.S. Ops Reportedly Underway The West Australian reported that Austal halted its shares from trading, and reportedly is in the process of reviewing its U.

Finance

Baltic Index Rises on Increased Demand Across Segments

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Thursday on higher demand across all vessel segments.

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

Vessels

Will Zim Join 2M?

Israeli carrier Zim Integrated Shipping Services (ZIM) might join the 2M Alliance between Maersk Line and Mediterranean Shipping Co., Alphaline said quoting industry sources.

Fincantieri Delivers Seven Seas Explorer

The first of two ultra luxury cruise ships delivered for Regent Seven Seas Cruises   Seven Seas Explorer, the newest ultra luxury ship of Regent Seven Seas Cruises,

Solstad CSV Gets Propulsion Overhaul at Gibdock

Gibraltar’s Gibdock shipyard has completed its scope of work on Solstad Shipping’s Normand Cutter, a 127-meter-long, 10,979grt construction support vessel (CSV)

 
 
Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Ship Repair Ship Simulators Sonar 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: 0.1102 sec (9 req/sec)