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Wednesday, December 13, 2017

The product market seems to be faring best at the moment

The product market is the segment that seems to be faring best at the moment. The fleet increase for the product tankers is not as big as for the larger tankers and trade may develop more positively. The orderbook is just some 13% of the fleet.

However, when looking at the few product trades for which we have figures, the development in 2011 seems to be quite flat compared to 2010. Total OECD product imports have increased only marginally. European product imports, which are the biggest, are quite flat and so are the North American imports where more products are traded intra regionally, according to the International Energy Agency (IEA) figures.

  

The strongest change can be seen in the U.S. product exports, which have increased every year and are so far this year 25% above the average level for the same period in 2010.

Sales for decommissioning of product tankers 10-6,000 dwt were very high in 2010, when we recorded 123 tankers of some four million dwt to be sold. This year we have recorded 10 tankers of 1.1 m dwt to be sold for decommissioning in this segment.

We still have a record of more than 300 tankers of some 9 m dwt which do not have double hulls in this segment. But the smaller the tankers are the less reliable are the figures, and most of them probably operate in quite restricted local trades. 

Contact: Erik Ranheim