BIMCO: 2016 Crude Tanker Growth at an 'Uncomfortable' Four-Year High

Crude tanker growth in 2014 and 2015 has been projected to be at less than 2 percent. 

A rise in crude oil tanker orders for 2016 has brought expected growth in the segment up to an "uncomfortable four-year-high," according to shipping association BIMCO. 

The orderbook has seen four very large crude carriers (VLCC) and six Suezmaxes over the past two months, raising the capacity for crude oil tanker deliveries in 2016 by 16 percent. 

The figure means that taking into account of demolitions, the projected crude oil fleet growth that year will be about 3 percent, higher than 2014 and 2015, which has seen less than 2 percent. 

"The limited fleet growth below 2 percent in the crude oil tanker segment is a very positive story in 2014 and 2015," the report said.

"This is pivotal to bring about better sentiment, as well as improvements to the fundamental supply-demand balance."

However, the years up to 2016 are looking positive for crude carriers. 

"Going forward, the coming year seems brightest for crude oil tankers, as the pressure from the supply side is low," said BIMCO.

The report forecasts an improved demand through 2014 and 2015 despite subdued economic growth weighing down oil markets. 

The report also said that 2014 has seen "glimmers of hope" in improving freight rates after "three devastating years." 

The rise in crude tankers is also happening alongside a decline in product tanker orders, which dropped to 24.4 million deadweight tonnage (DWT) from 26.2 million DWT.

Shipbrokers Charles R. Weber Co. also said this week that falling bunker prices has given tanker operators a boost.