Tanker Market: A Pessimistic Outlook

Wednesday, May 16, 2012

Drewry Maritime Research’s latest Tanker Forecaster report indicates that Suezmax owners got some respite in the first quarter of the year, but things are looking bleak in the longer term. Spot rates firmed on the back of buoyant demand in the Caribs, Arabian Gulf and West Africa, but rising bunker prices would have absorbed much of the increase. US demand for West African crude was the one to watch as it staged a recovery in March and underpinned Suezmax rates on the benchmark TD5 (West Africa / Caribs - US) route, with earnings surging 64% to $18,733pd. 
But the recent market strength seems a mere aberration rather than a fundamental upward shift. Fundamentals are expected to remain bearish in the near term with the supply-demand gap broadening and a larger number of vessels chasing fewer cargoes.
That lack of confidence was visible in the time charter market, with only two Suezmax vessels fixed during the first quarter. The 12-month rate for five-year old vessels averaged $17,067pd, down about 2.5% from the previous quarter.
Demand is likely to suffer from seasonal weakness in the coming quarter, while the fleet will continue to expand. Drewry expects the Suezmax supply-demand gap to widen from 12.8 million dwt to 14.8 million dwt in the second quarter, while earnings on West Africa-Caribs/USES are expected to average $11,800pd.
With the fleet growing by 7% in 2012 and 2013, market conditions will only start to improve from 2013 onwards, mainly on expected improvement in demand with recovery in the global economy.

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

Tanker Trends

Gas Carrier Concept Stems from Bulker Design

Deltamarin Ltd and Brevik Technology AS, a VARD affiliate, have joined forces to develop a novel multigas carrier design concept that combines the design of Deltamarin’s B.

Poland: First LNG Shipment due in Nov-Dec

Poland expects to receive its first cargo of liquefied natural gas at its new LNG terminal at the end of November or early December, the treasury minister was quoted as saying on Sunday.

Poland Expects First LNG Shipment Next Month

As Świnoujście terminal which is designed to reduce Poland’s dependence on natural gas imported from Russia is at the final stage, Poland expects to receive its


Noreco CEO Quits

Norwegian Energy Company ASA (Noreco) announces that Tommy Sundt is stepping down as CEO of Noreco ASA. Since joining Noreco in September 2014, Tommy Sundt

BSM Completes Global Management Program

Bibby Ship Management has successfully completed its second Global Management Programme which, it says, has helped to develop the management skills of all its

DP World Leading M.E. Investor - MEIRS Awards

Global marine terminal operator DP World has collected an impressive four awards including the Grand Prix of ‘Leading Corporate for Investor Relations in the

Maritime Careers / Shipboard Positions Maritime Contracts Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction 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: 0.1278 sec (8 req/sec)