NNA - Crude Tanker Supply Side Outlook (Summer 2018)
What is the Supply Side? Why is it Important?
The supply side is composed of vessels that are on the water, and when speaking about the future, can include vessel contracts on order. Those contracts, or "newbuilds", are collectively referred to as the "orderbook".
As with any market, "price" is determined by a combination of supply and demand. In this case, charter rates for these vessels are the "prices" we concern ourselves with when talking about shipping markets.
Charter rates are negotiated through brokers attempting to balance the available supply of vessels with current demand.