World Suezmax Fleet Counts 514 Vessels

The world Suezmax fleet (excl. shuttle, product & Jones Act tankers) counts 514 vessels at the end of 1Q2019, said Nordic American Tankers (NAT).

The total delivery during 2018 was 28 vessels, said a report by the  international tanker company.

"For 2019 we expect a similar number of vessels as in 2018, and in 2020 we currently see 22 vessels scheduled for delivery. During 2018, 21 Suezmax vessels were scrapped," it said.

According to the report, the world economy is enjoying its strongest upswing since 2010. What is good for the world economy and world trade is by nature positive for the crude oil tanker business. In addition to the role of major oil companies, large oil traders have become important for the tanker industry.

However, the supply of tanker tonnage is inelastic in the short-term. When there are too many ships in an area, rates tend to go down.

"When there is scarcity of ships, rates tend to go up. Short-term spot tanker rates may be expected to be volatile," the company said.

NAT has one of the largest fleet of Suezmax tankers in the world. Its fleet consists of 23 well maintained Suezmax tankers with an aggregate cargo capacity of 23 million barrels of crude oil.