Frontline CEO: Tanker Orderbook Is a Concern
The strength of the tanker market which has enjoyed pretty high rates may be threatened by the inflow of the new tonnage scheduled for delivery in the following two years.
“Given the positive outlook of the tanker market we expect very little scrapping and the orderbook is a concern. As the delivery schedule shows a significant number of ships is due to deliver from now up to the end of 2016,” said Frontline ceo Robert Macleod.
The pending deliveries exert pressure on the global oil supply, which would have to be increased so as to absorb the new tanker capacity.
There are currently 639 vessels in the world fleet, out of which around 200 controlled by oil companies.
So far, nine vessels have been delivered in 2015 and the orderbook comprises of 107 vessels, which is 17% of the present fleet.
According to Macleod, the Suezmax orderbook, comprised of 67 vessels, is also a reason for concern as it constitutes 15% of the current fleet of 449 vessels.
There are four more vessels to be delivered in 2015, followed by 10 more units in the first half of 2016. Most of the deliveries are expected to take place in the third and fourth quarter of 2016, 14 units per each quarter. Based on the current orderbook, 26 vessels are to be delivered in 2017.
Speaking of the market trends in the second quarter of 2015, Macleod said that high supply of oil resulted in storing of cargo before it could find a buyer.
“Vessels in various ports and places around the world were forced to store as they were instructed to wait for the cargo on board to be sold to,” he explained.
As explained, the trend is likely to remain a factor going forward in the tanker market.
World Maritime News Staff