d’Amico Expects Boost in Tanker Demand
Product tanker demand is expected to be boosted going into 2020 by impacts relating to the IMO 2020 sulfur cap, including higher global refinery throughput and gasoil trade in particular, said d’Amico International Shipping.
The international marine transportation company operating in the product tanker market quoted Clarksons projecting product tanker dwt demand to grow by 5.7% next year.
The IEA, in their October report have reduced their oil demand growth forecasts for 2019 and 2020. They expect growth in 2019 to be the weakest since 2016, following evidence of a slowdown in several major consuming regions and countries, including Europe, India, Japan, Korea and the US.
In October, US sanctions on selected entities of COSCO, the world’s largest tanker owner, Venezuelan-related issues, a tanker attack in the Middle East, a typhoon in Japan and scrubber retrofits all contributed to the large earnings spike in the crude sector.
The resulting hike in rates prompted a large amount of LR2 tankers to switch into the crude market. The reduction in supply of LR2 tankers and an increase in demand for Naphtha into Asia has resulted in an overall improvement in product tankers earnings.