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Crude Oil Tanker News

11 May 2021

BIMCO: Ship Demolition Prices Spike, Tankers Lead the Way

Chart courtesy BIMCO

In the first four months of 2021, the amount of oil product tanker capacity that has been sent for demolition has already reached the total amount of demolished capacity in each of 2019 and 2020 due to unfavourable freight rates. If that pace continues for the rest of the year, an 11-year record is set to be broken.This according to a report out today from BIMCO, which shows that so far this year, 10 crude oil and 38 oil product tankers have left the active trading fleet and the…

29 Apr 2021

HSFO Sales Rebound After Pre-IMO 2020 Correction -BIMCO

© Rex Wholster / Adobe Stock

In the first quarter of 2021 high-sulpfr fuel oil (HSFO) has been the only bunker fuel to experience year-on-year growth in Singapore, the world's largest bunkering hub. HSFO sales are up 47.2% from Q1 2020, reaching 3.1 million tonnes. This is however still less than a third of high-sulfur fuel sales in Q1 2019, before the IMO 2020 Sulphur Cap came into force.The 1 million tonne increase in HSFO sales exceeded the fall in low-sulfur fuel oil (LSFO) and marine gas oil (MGO) sales, though only marginally, with total bunker sales in Singapore up by 0.8% in Q1.

11 Mar 2021

Secondhand Prices Put a Damper on Tanker Demolitions -BIMCO

© aerial-drone / Adobe Stock

The year 2021 has been tough on crude oil tanker freight rates across the board so far. Consequently, the industry buzz has been all about largescale scrapping of tankers, but so far, it has been all talk and very little walk, as the secondhand market has proved a much-preferred alternative, says industry group BIMCO.Although demolitions are up from the start of last year, only two shuttle tankers and two Aframax crude oil carriers (450,000 DWT) have been confirmed demolished in the first two months of 2021, according to data from Clarksons.

25 Feb 2021

Tanker Shipping Facing a Tough Year Ahead, Says BIMCO

© aerial-drone/AdobeStock

After a turbulent year, low demand looks set to plague the market in the coming months combined with too many ships fighting for too few cargoes in both the crude oil and oil product segments, says the oil tanker shipping overview and outlook released today by BIMCO.Demand drivers and freight ratesThe realities of the pandemic are setting in for the tanker market. The record-breaking Q2 2020 is a distant memory and, instead, the market faces a slow recovery with low demand, stock…

26 Jan 2021

BIMCO: Tanker Market Hangover Continues

© unikyluckk/AdobeStock

Tanker shipping was in many ways the odd one out of the shipping sectors in 2020; at the start of the pandemic, the market was strong, only to finish off the year in the doldrums, while the other sectors stayed profitable. Even a demand boost in December only managed to lift earnings slightly, raising the question, what will it take for tankers to return to profitability?In the immediate aftermath of the pandemic being declared, tanker shipping appeared immune, but it too has suffered from lockdowns and travel restrictions.

21 Dec 2020

ABS Awards AIP for Infection Mitigating Design to SHI

© sorapolujjin / Adobe Stock

Classification society ABS said it has awarded South Korean shipbuilder Samsung Heavy Industries (SHI) Approval in Principle (AIP) for crew accommodation and ventilation systems designed to mitigate the spread of infectious diseases such as COVID-19.The AIP, which is said to be an an industry first, is the product of a joint development project (JDP) between ABS and SHI that applied the principles described in the ABS Guide for Mitigation of Infectious Disease Transmission On Board Marine and Offshore Assets to a crude oil tanker…

25 Nov 2020

Oil Tanker Hit by Explosion at Saudi Terminal

© Eulo Felber Sabran / MarineTraffic.com

An explosion damaged a Greek-managed tanker at a Saudi Arabian terminal on the Red Sea just north of the Yemeni border, the ship's manager said on Wednesday, in an attack confirmed by Saudi Arabia.In a statement published by state media, the Saudi-led coalition fighting the Houthis in Yemen said a commercial vessel suffered minor damage from shrapnel in what it described as a foiled terrorist attack.Athens-based TMS Tankers said the Maltese-flagged vessel it managed was "attacked…

25 Nov 2020

BIMCO on Tanker Shipping; The Worst is Not Over

Source: BIMCO

While the tanker market had a strong run at the outset of the COVID-19 pandemic, according to a report released this morning by BIMCO, tanker shipping will not benefit this year from the usual strong winter seasonal effect. Though the new lockdowns being introduced in many countries are less strict than in the spring, the effect on tanker shipping will be worse, given the supply glut of Q2. The news of an effective vaccine offers some hope of a global oil demand recovery but, however it comes about…

19 Nov 2020

Sale of 25-year-old VLCC Ends 512-day Demolition Draught

© Bernd Rohr / MarineTraffic.com

The sale of Sam (formerly Zoya 1), an almost 25-year-old 300,500 DWT crude oil tanker, marks the end of the fourth longest streak of zero VLCC demolitions in history, this time lasting 512 days. The last very large crude carrier (VLCC) to be demolished was the 300,361 DWT Watban which was scrapped in Bangladesh in June 2019.In January this year, a fire erupted on board the Zoya 1 while undergoing maintenance. As a result of the fire, several crew members died, and more were injured.

13 Aug 2020

Containerships Overtake Tankers as Most Scrubber-fitted Sector -BIMCO

© aerial-drone / Adobe Stock

Containerships with a collective cargo carrying capacity of 5.3 million 20-foot equivalent units (TEU) are now fitted with an exhaust gas cleaning system (scrubber) to remove sulphur oxides (SOx) from the exhaust gasses generated by the combustion processes in marine engines and thereby comply with the IMO 2020 global sulphur regulation which came into force on January 1, 2020.By the start of July, the share of the containership fleet with scrubbers installed exceeded that of the crude oil tanker fleet.

06 Aug 2020

Ship Orderbook Shrinks to 17-year Low -BIMCO

© hasehase2 / Adobe Stock

The total orderbook for dry bulk, container and tanker ships has reached its lowest point in 17 years as COVID-19 has massively slowed contracting (-50%) while deliveries of new vessels have proved more resilient (-2%).The orderbooks for bulk carriers and containerships in particular have fallen sharply. At 63.4 million deadweight tons (DWT), the dry bulk orderbook is at its lowest level since April 2004 and 34.7% smaller than 12 months ago. Similarly, the orderbook for containerships…

03 Jul 2020

Marine Fuel Market Facing Tougher Q3 as Supply Rises

Image by vladsv/AdobeStock

Global supply of fuel oil, used by ships and power plants, is expected to grow in the third quarter, depressing the marine fuel market as shipping demand remains weak, analysts and trade sources said.Third-quarter supply is estimated to rise by 620,000 barrels per day (bpd) from the second quarter as China and Brazil increase production, according to consultancy Energy Aspects.This comes as inventories across key marine refueling hubs recently reached all-time highs, depressing bunker fuel prices and refiners' margins and dashing hopes for a profitable year for sellers of low sulfur fuel that

24 Jun 2020

Geopolitics Dominate the Oil Tanker Market -BIMCO

© Björn Wylezich / Adobe Stock

Developments in the oil tanker market in the past decade dominated by geopolitics, says shipping association BIMCO.Crude oil and product tanker markets alike have faced high volatility in recent weeks and months, largely due to geopolitics and the constantly evolving situation in the global oil markets. The first major disturbance since the fall in the oil price between the fourth quarter of 2104 and first quarter of 2016 came in the fourth quarter of 2019, after which freight rates have bounced back despite a collapse in demand.In these extraordinary times…

18 Jun 2020

Bunkering at UAE's Fujairah Plummets in May

© Pavel Losevsky / Adobe Stock

Ship fuelling activity in Fujairah in the United Arab Emirates, a bunkering and fuel storage hub in the Middle East, fell in May as declining demand was made worse by slowing global trade because of the coronavirus pandemic, four trade sources said.Fujairah's ship refueling, or bunkering, volumes shrank to about 200,000-300,000 tonnes in May, down from average volumes of about 700,000-800,000 tonnes, said the sources with knowledge of the regional trade who declined to be identified."It's all things COVID…

25 May 2020

BIMCO Tanker Rate Analysis: Reality Kicks In, Rates Fall

Source: BIMCO, Clarksons

Tanker shipping: sky high freight rates replaced by reality of falling global oil demandGeopolitical tensions have now eased, leaving freight rates to feel the full effects of the weak underlying market and falling demand. Tanker shipping looks set to be under pressure for the rest of the year.Demand drivers and freight ratesThe tanker shipping industry was once again caught in a whirlwind, as freight rates skyrocketed with little regard to the poor market fundamentals before the latter once again caught up with rates.

06 May 2020

Crude Oil Tanker Earnings Drop 68% in Nine Days -BIMCO

© Björn Wylezich / Adobe Stock

Crude oil tanker earnings have come down sharply in recent weeks with very large crude carrier (VLCC) earnings from the Middle East Gulf to China dropping 68% in just nine days (from $222,591 per day on April 22 to $71,885 per day on May 4), according to BIMCO. In the same period, daily VLCC earnings from the Middle East Gulf to the U.S. Gulf have plunged nearly 80% (from $162,433 per day to $36,249).The window of extraordinary earnings closed at the end of April with the OPEC+ oil production cuts of 9.7 million barrels per day (bpd) on May 1, reducing the flood of oil in the market.

27 Apr 2020

Interview: A Return to Wind Power with Tuomas Riski & Norsepower

Norsepower CEO and co-founder Tuomas Riski.

Norsepower CEO and co-founder Tuomas Riski has put a new spin on some established technology, bringing wind power back to shipping in an undeniably eye-catching manner. Here Nor-Shipping’s latest ‘Ocean Action Hero’ explains the benefits of his firm’s unique technology, his plans for building global market presence, and the key role Norsepower’s sails can play in enabling a more sustainable shipping industry. “But isn’t there a problem that some people think it looks, you know… a bit odd?” Tuomas Riski laughs at a question that you quickly get the feeling he’s dealt with before.

08 Apr 2020

Coronavirus Disrupts Supply of Ships and Demand -BIMCO

© Carabay / Adobe Stock

The coronavirus outbreak has affected all aspects of the shipping industry, lowering, if not wiping out, demand growth prospects for the year across all segments. The outbreak has also affected fleet development, says shipping association BIMCO.Contracting activity has fallen, demolition activity, which had been high, is now being limited by restrictions around the world and deliveries of new vessels are delayed.“The coronavirus has certainty replaced the IMO 2020 sulphur regulation as the talking point of the year.

02 Apr 2020

While Oil Prices Plummets, Tanker Rates Fly High

Source: BIMCO, Clarksons

If one ever needed proof that, no matter how dire the situation, there is always a silver lining, look no further than the crude tanker market, which has seen it day rates skyrocket in the face of a global pandemic that has effectively ground world commerce to a crawl.As is the case with other gravity defying business phenomena, geopolitics is a central factor, in this case a battle between Russia and Saudi Arabia to flood the world with oil in the face of declining demand and…

19 Mar 2020

Shipping Not Immune to a Pandemic -BIMCO

© donvictori0 / Adobe Stock

The World Health Organization (WHO) has declared the outbreak of the novel coronavirus a pandemic. There is little doubt that this will have significant implications for the shipping industry. But to what extent? BIMCO expects that the strict containment measures imposed by governments around the world will result in substantially lower global economic growth and consequentially, lower demand for shipping. Container and dry bulk shipping are at the front line when it comes to feeling the fallout…

18 Mar 2020

BIMCO Revises 2020 Forecast

© Igor Yu. Groshev / Adobe Stock

The coronavirus pandemic is impacting global shipping demand for 2020 negatively. The speed of the virus spread makes it difficult to assess the full consequences. Nevertheless, we see a need to update our 2020 forecast to make some of this massive uncertainty tangible.What is going on in addition to the coronavirus pandemic?Geopolitical tensions that made the OPEC+ alliance break down, has subsequently made the crude oil tanker spot freight market erupt. The events that followed the breakdown - and those that are likely to follow…

16 Mar 2020

Sovcomflot Updates Fleet Status

PAO Sovcomflot (SCF Group), a Russian maritime shipping company specializing in petroleum and LNG shipping, announced that it has taken delivery of four newbuildings during last year.Three ‘Green Funnel’ LNG-fuelled Aframax crude oil tankers (Korolev Prospect, Vernadsky Prospect, Samuel Prospect) and Mikhail Lazarev, an Arctic MR shuttle tanker transporting crude oil for the Novy Port project, are now under a long-term contract with Gazprom Neft.All vessels are designed to the highest industry standards of safety and sustainability, it said.Korolev Prospect, a ‘Green Funnel’ crude oil tanker, became the first vessel to cross the entire length of the Northern Sea Route using only cleaner-burning LNG as a fuel.According to the company…

13 Mar 2020

KOTC Adds New Gas Tanker

Kuwait Oil Tanker Company (KOTC) said that it received the giant liquefied natural gas (LNG) tanker, Umm Ruwaisat, as part of a major fleet overhaul.Accoding to Kuwait News Agency (KUNA), KOTC has entered the fourth phase of its fleet overhaul, which entails the delivery of eight carriers, three of which are gas tankers built by South Korean ship building firm Hyundai MIPO.The fourth phase of the fleet development includes the delivery of eight tankers of which three are giant LNG tankers built by Korea’s Hyundai Heavy Industries Co, in addition to four medium-term oil products tankers and a huge crude oil tanker currently being built in a Chinese firm.

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