Fleet Growth Still a Burden to Suezmax Rates

The Suezmax fleet witnessed a net fleet growth of 9.6% in the 12 months from August 2016, putting more pressure on spot rates, according to Poten & Partners.

During the period the Suezmax fleet increased by 43 tankers, reaching a total of 492 on August 1, 2017, compared to 449 units reported a year earlier.

The delivery of 50 Suezmaxes combined with the removal of 7 units led to a net fleet growth of 9.6%. The growth represents almost double the 5% ton-mile demand growth seen in the same period, as aggregate ton miles for the segment increased from 1,098 to 1,153 billion, while the total number of voyages declined by 2.1% from 3,002 in 2016 to 2,940 in 2017.

There are still 70 Suezmaxes on order, 23 set for delivery later this year, 42 in 2018 and 5 so far for delivery in 2019. Poten & Partners noted that it is an encouraging sign that only 8 Suezmaxes have been ordered year-to-date.

“Seasonal factors will likely push rates up again in the coming months, but ongoing supply side restraint is critical if we want to experience a sustained freight market recovery.”

The Suezmax tankers have performed poorly so far this year. Namely, earnings on the benchmark Bonny (West Africa) to Philadelphia route are currently around USD 7,400/day, which is barely enough to cover operating expenses. The year-to-date average for this route has been USD 12,600/day, as compared to USD 23,700/day last year and USD 41,300/day in 2015.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Feb 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 1 2 3

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

2nd CWC Japan LNG & Gas Summit

The highly successful CWC Japan LNG & Gas Summit returns for a second year…

read more >

GREENTECH IN SHIPPING GLOBAL FORUM

The mindset of sustainability and efficiency is the key to unlocking successful business…

read more >

LNG2019

LNG2019 features the largest number and highest level of LNG industry leaders.

read more >