World News
BIMCO Warns Current Tanker Boom May Not Last as Coronavirus Kills Oil Demand
Shipping industry body BIMCO has issued a gloomy outlook for the tanker industry despite its current surge in profitability.
"Freight rates for crude oil carriers are currently super-strong; if or when the geopolitical support eases, the over supplied market is likely to deliver freight rates below the levels of last year," Peter Sand, chief shipping analyst at BIMCO, said in a research note published on the organisation's website Wednesday.
The current strength in tanker rates is being driven by a spectacular falling-out between Saudi Arabia and Russia, with both now sharply increasing crude exports.
Deliveries of new tankers are expected to be lower than expected because of delays at Chinese yards, Sand wrote, but BIMCO still expects annual fleet growth of 1.8% for crude tankers and 2% for refined products this year.
"In the longer term, the corona pandemic has annihiliated global oil demand for 2020," Sand said.
"BIMCO expects world consumption will fall in 2020, year on year.
"Transportation demand is going down -- most significantly for jet fuel as a single commodity, more generally due to lower economic activity."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 556.50 | 9.00 | 685.00 | 6.50 |
| Rotterdam | 506.00 | 6.00 | 665.00 | 11.00 |
| Houston | 552.50 | 0.50 | 682.00 | 4.00 |
| Fujairah | 548.00 | 7.50 | 750.00 | 3.00 |
| Global 20 Ports Average | 583.50 | 4.00 | 762.50 | 2.50 |
| Global 4 Ports Average | 546.50 | 4.50 | 697.50 | 2.50 |
| Global Average Bunker Price | 632.50 | 2.00 | 811.00 | 1.50 |
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