Global Oil Transportation System Imperfect, Explains Forecaster

MarineLink.com
Monday, February 03, 2014
2014-2018 Tanker Market Outlook': Image courtesy of McQuilling Services

In the second of a four part series of explanatory notes to McQuilling Services '2014-2018 Tanker Market Outlook' an important element of the company's forecasting process regarding fleet utilization and availability (included for the first time in the current report) is discussed in the following brief excerpt.

The marine transportation system described by the global carriage of crude oil and petroleum products is by nature imperfect and highly inefficient.  If it were perfectly efficient, tankers would be able to load their next cargoes in the same location that they discharged their last cargoes and sail loaded at full capacity on all voyages.  However, in reality, tankers spend a significant portion of their trading lives sailing empty or otherwise inefficiently deployed.
 
As a result of these inefficiencies, the actual supply of tonnage available to meet transportation demand is less than implied by the mathematical summation of the carrying capacity of the world tanker fleet.  This is because the total number of vessels available at any given time is reduced by the inefficiency that stems from the nature of the transportation system and by commercial decisions of owners and charterers in the marketplace.  Characterizing and quantifying these inefficiencies is of significant value in understanding how vessel supply relates to demand in the tanker industry.


McQuilling uses the vessel utilization and availability concepts summarized in the above diagram, and as described fully in their note (available at: https://www.mcquilling.com/) to adjust the average inventory of tankers across tanker sectors able to meet tanker ton-mile demand.
 

 

 

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

People & Company News

SUNY Maritime College Names ABS Chairs

The State University of New York (SUNY) Maritime College has selected Dr. Richard Burke and Dr. Christopher Clott as its inaugural ABS chairs following a comprehensive

Austal Starts Next US Littoral Combat Ship

Austal and the U.S. Navy held a keel-laying ceremony today for the future USS Manchester (LCS 14), marking the first significant milestone in its construction.

Conference to Delve into Hybrid Power & Propulsion

The first international Hybrid Marine Power & Propulsion Conference will be held at the RNLI Lifeboat College, Poole UK from October 6-8, 2015.   Shock Mitigation

Tanker Trends

Canada Slaps Sanctions on Russia Energy Firms

Canada slaps sanctions on Gazprom, other Russia energy firms   Canada is imposing economic sanctions against Russian energy firms such as natural gas producer

Tanker Converted to LNG-electric Propulsion

Bergen Tankers’ 95-meter-long chemical and product tanker Bergen Viking has returned to service following its conversion from diesel-electric to liquefied natural gas (LNG)-electric propulsion.

Dorian Delivers the Cobra

Dorian LPG Ltd., a leading owner and operator of modern Very Large Gas Carriers reported today that it took delivery of the ECO VLGC Cobra from Hyundai Samho Heavy Industries.

Finance

Multimodal Freight Bill Introduced in US Senate

Cantwell, Booker, Murray, Markey introduce freight investment legislation aiming to eliminate chokepoints at critical highway, rail, port and intermodal facilities to support economic growth,

Crowley Acquires 4,300 Pieces of Liner Equipment

In response to continuing high customer demand, Crowley Maritime Corporation’s liner services group has placed orders for additional equipment, including hundreds

DPE is New Majority Shareholder in INTERSCHALT

Deutsche Private Equity GmbH (DPE) is set to become the new majority shareholder in INTERSCHALT maritime systems AG, the maritime software and services provider

Fuels & Lubes

Danish Investors Sue Bankrupt OW Bunker

A group of Danish investors have sued OW Bunker for 800 million Danish crowns ($120 million) for misleading them in its initial public offer (IPO), after the ship

PPG Unveils NOVAGUARD 810

Solvent-free product offers a single-coat solution for rapid cure and return to service, suitable for a wide range of oil products and chemical cargoes.  PPG

U.S. West Coast Refiners Snap up Russian Crude

Move comes amid worries of seasonal dent in Alaskan supply; gap between U.S., international crude prices narrows. Refiners on the U.S. West Coast and Hawaii

Consulting

China's State Audit Uncovers Misdeeds in Cosco

Intensifying crackdown on corruption China’s National Audit Office released an audit report for state-run shipping conglomerate Cosco Group in which it has uncovered

New European Inland Waterway Project Underway

Engineering and consulting firms setec and Royal HaskoningDHV have been selected by VNF – the French navigable waterways authority – to jointly provide program

Baltic Dry Index Climbs to an All Year High

The dry bulk market has been devastating so far in 2015. However, June has somehow reversed it all in less than three weeks if judged by the Baltic Dry Index (BDI).

 
 
Maritime Careers / Shipboard Positions Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics 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: 0.2048 sec (5 req/sec)