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Thursday, October 18, 2018

INTERTANKO at Lloyd's 4th Annual Combined Chemical & Product Tankers Conference, London

"The product tanker market has been through a very strong growth period but there are indications this year that the growth has stopped," maintained INTERTANKO's Research & Project Manager, Erik Ranheim, in a presentation given at the Lloyd's 4th Annual Combined Chemical & Product Tankers Conference.


He showed that there is a long-term trend that the production of heavy fuel oils is declining from an average of some 28% in the middle of the 1970s towards 10% today. The consumption of heavy/middle distillates started at the same level as HFO in the mid 1970s but has increased to some 37% of the barrel. This trend is likely to continue because, for example, the new big Indian Essar and Reliance export refineries will not produce heavy fuel oil and also current refineries, such as the Neste refinery in Finland, have invested in the conversion of residues to lighter products.


Ranheim went through the supply situation for different tanker segments from 600 dwt to 79,999 dwt. He recalled that the phase-out of tankers 600 dwt to 4,999 dwt will come into effect as from 2008, and went on to show that despite assuming a trade growth of 2.5-3.5%, a tanker surplus is building up in all segments. So far in 2007 there has been a decline or levelling out of product import and the assumed trade growth must therefore be regarded as bullish.


Click here to view Ranheim's presentation.


Contact: Erik Ranheim