TANKERS

Are there still too many tankers?

Published 17. Feb 2022 10:52 AM

We are currently at a time in the tanker market where supply exceeds demand by quite a lot

We are currently at a time in the tanker market where supply exceeds demand by quite a lot, and on top of that, supply is growing. We have recently heard from industry experts that there is an oversupply of tonnage in that market and that the increase in newbuilding prices is a good thing since it keeps tanker owners from ordering self-sabotaging newbuildings.

There might be something about the talk as well. Looking at deliveries and demolition numbers from 2021/22, it shows that not only for 2021 but also for 2022 thus far, have there been more than the double amount of tonnage entering the market than exiting. Given the market conditions, with low rates and historically high demolition prices, it does not make much sense from an economical standpoint. It might be time to admit that there is a general overoptimistic culture within the tanker market, which needs to change as it is counterproductive for the whole market.


Fleet (Handysize< ) (Rough estimates)
2021
Delivered in DWT: 25,000,000
Demolished in DWT: 12,200,000

2022 so far
Delivered in DWT: 3,500,000
Demolished in DWT: 1,500,000

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