Gibson Shipbrokers Ltd : Weekly Tanker Market Report - Fair Value?
Gibson Shipbrokers Ltd : Weekly Tanker Market Report - Fair Value?
VLCC earnings have been remarkably strong over the past few months despite the prospect of OPEC+ production cuts which are largely focused on the Middle East. With cuts planned, next year will also coincide with increases in regional refining runs, the fundamentals suggest earnings will ease into 2023. However, shifting trade flows and fleet developments make this outcome far from certain.
First, it is important to take stock of the supply side. Gibson counts 876 VLCCs on the water, however, the actual number of vessels available in the mainstream, non-sanctioned market is in fact lower, with 15% of the fleet engaged in sanctioned or unconventional activity. Furthermore, an additional 15% of the fleet (excluding those engaged in questionable activity) are over 15 years of age, putting almost 1/3rd of the VLCC fleet out of reach for many charterers. Coincidently, the number of VLCCs over 15 years of age sold to relatively unknown owners almost matches the number of newbuild VLCCs delivered from shipyards to date, suggesting that available fleet supply is largely unchanged year on year.
Read complete report here: Download
Similar News
