Page 34: of Maritime Reporter Magazine (June 2020)

Global Markets: taNkers 2020 yearbook

Market: Tankers olivia Watkins, Head Cargo analyst, Vessels Value otal number of tanker orders are down by 26% for 2020 and seem to have plateaued. The earnings boom occurred after

YTD compared to the same period in 2019. By compar- OPEC failed to agree output limits which resulted in a price ing to 2018 YTD, this year there have been half the num- war. This increased the demand for large tankers due to in-

T ber of orders placed. This comes as no surprise as Eu- creased traded volumes and storage and caused positive values rope and the US entered the lockdown phase of the pandemic for most Tanker types, for a short period of time. earlier this year, only a month or so after the Chinese industry Although the number of sales were down 2020 YTD, the total shut down. However, towards the end of May 2020 orders were spent in the second-hand market was up 3% on last year. This placed for both VLCC’s and Suezmaxes by the Greeks, Norwe- can be explained by the high prices being paid on vessels in the gians and Angolans accounting for c.$780 mil. crude market where new owners were willing to pay premiums

The S&P market has also taken a hit so far this year with for prompt delivery into the hot market. sales down 25% compared to 2019 YTD. Although COVID-19 Tanker demolition rates have taken a tumble since the begin- has dampened the number of vessels being transacted, we have ning of the year with the Indian Sub-Continent closing during seen positively volatile Tanker rates. VLCCs saw highs of USD the midst of lockdown, this led to few demolition deals being 260,000 a day in March and but lows of $10,000 a day back in completed.

February. The year started with steel plate prices at $425/LDT which

Figures are now circulating around the $30,000 a day mark have since declined to $315/LDT. 34 Maritime Reporter & Engineering News • June 2020