- Only two new supertankers are expected in 2024, marking the lowest figure in almost four decades and 90% below the yearly average.
- Attacks in the southern Red Sea by Houthi rebels caused widespread diversions in global petroleum trades.
- Exacerbating the situation, the industry faces challenges from an aging fleet and a historically low order book.
- Rates remained controlled as OPEC and allies restricted oil supply last year.
- Global oil flows reshuffled post-Russia’s invasion, leading to longer delivery times, such as shipments to Europe taking weeks instead of days.
Navigating Turbulence
In 2024, the oil tanker industry confronts hurdles stemming from a shortage of new vessels joining the fleet, with projections indicating merely two new supertankers—a figure representing the lowest in nearly forty years and a stark 90% decline from the annual average.
According to Bloomberg, attacks by Houthi rebels in the southern Red Sea have led to widespread diversions in global petroleum trades, causing spikes in shipping rates and longer voyage durations. The situation is exacerbated by an aging fleet, a historically low order book, and tanker owners’ increased avoidance of the Red Sea.
Navigating Global Shifts
Furthermore, rates had been held in check last year as OPEC and its allies kept oil off the market. At the same time, a wider energy transition is meant to do away with fossil fuels — dimming the industry’s outlook in the longer term, Bloomberg adds. However, increased avoidance of the southern Red Sea adds to the duration of trade that had already become elongated due to Russia’s war in Ukraine.
Oil deliveries have generally become more long-distance since a reshuffling of global oil flows following Russia’s invasion of Ukraine. Bloomberg notes that shipments to Europe that would previously hop a few days across the Baltic Sea are now taking weeks to get to other parts of the world.
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Source: Safety4sea
