- Product tanker contracting so far in 2024 has reached an 18-year high, marking a 17% increase compared to the previous year
- The boom follows an already strong performance in 2023, which saw the third-highest contracting level.
- The order book has expanded rapidly, growing by 135% in 2023 and a further 45% so far in 2024, reaching a total of 37.1 million DWT.
Product tanker contracting has surged to its highest level since 2006, with 194 vessels over 10,000 deadweight tonnes (DWT) ordered in the first seven months of 2024, according to a report by BIMCO.
These new contracts, totalling 13.3 million DWT, represent a 17% increase from last year and place 2024 as the second-highest year on record for tanker orders.
Product tanker ordering reaches 18-year high
The global order book has expanded rapidly, growing 135% in 2023 and an additional 45% this year, now totalling 37.1 million DWT. Chinese shipyards have captured 72% of this demand, solidifying their dominant position in the industry.
The order book to fleet ratio has nearly tripled since early 2023, reaching 19.6% in 2024. With 90% of the current order book scheduled for delivery between 2025 and 2027, significant fleet growth is anticipated.
BIMCO highlights that the product tanker sector has seen the fastest order book growth among all cargo sectors, with a 241% increase since early 2023. Despite this, the fleet’s average age has risen to 13.6 years, and limited recycling of older ships is expected to contribute to a net fleet expansion of 12.5% by 2027.
The ongoing demand for product tankers is strong, but BIMCO warns that decarbonisation efforts and the electrification of vehicles could outpace future demand, potentially leading to an oversupply in the coming years.
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Source: BIMCO
