- Korean shipbuilders anticipate a surge in tanker orders in 2024 due to increased crude oil transport distances from the Ukraine war and Red Sea unrest.
- Ongoing demand, geopolitical risks, and Korean success drive this projection.
Korean shipbuilders are set to benefit in 2024, expecting a surge in tanker orders driven by extended crude oil transport distances due to the ongoing Ukraine war and rising unrest in the Red Sea.
Driving Forces: Russia-Ukraine War Impact
Sanctions on Russian crude oil imports redirected Europe’s imports, significantly increasing tanker ton-miles. Higher freight rates and demand for additional vessels fueled a substantial year-on-year increase, reaching 143 tanker orders by early December 2023.
Sustained Momentum in 2024
Tanker orders are expected to remain robust, fueled by ongoing demand and geopolitical factors. With a shortage of very large crude carriers (VLCCs) predicted, recent successes by Korean shipbuilders contribute to rising expectations, hinting at a potential shift in the industry landscape.
Geopolitical Risks and Korean Success
Houthi rebel attacks in the Red Sea and Suez Canal uncertainties are poised to drive further orders. Korean shipbuilders, securing a notable share of Suezmax crude carriers, demonstrate a growing trend away from Chinese shipbuilders, whose shipbuilding slots are depleting.
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Source: Business Korea
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