Tanker Shipping Keeps The Balance In Restless Waters

2025-03-04 09:55:00 ET

Summary

• We still see a fairly comfortable outlook for tanker shipping.
• Demand has risen slightly, and ordered capacity isn't overwhelming.
• The sector remains heavily exposed to geopolitics, with inefficiencies due to sanctions and longer journeys supporting charter rates.

By Rico Luman

Tanker demand keeps up and diversifies

We're expecting to see another solid year for the tanker shipping segment. General global oil demand continues a mild growth trajectory of 1% year-on-year, with the mix of refined products - shipped in product tankers - gradually changing, with less gasoline, more jet fuel, and more LPG. Additionally, biofuel flows are expanding as blending steps up in aviation, road transport, and shipping. This means the product mix is widening, which may require more (dedicated) vessels. Generally, the global oil demand balance is slowly shifting from the West to fast-growing economies in the East, such as India. In China, oil consumption is decelerating after strong growth, a key reason being the rapidly increasing electric vehicle ((EV)) fleet....

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