VLCC time charter equivalent (TCE) rates rose 61.8% in March compared to February 2019, while Suezmax and Aframax rates recorded a decrease of 52.8% and 11.8% respectively, reported Italian origin shipbroker Banchero Costa in its April Tanker Monthly Fleet Update.
Banchero Costa Group’s global head of research Ralph Leszczynski, who spoke at the Asian Tanker Conference, is one of the authors of the regular report.
When looking at tanker fleet growth, Banchero Costa takes into account slippage and recorded 96 crude tanker (uncoated) vessels over 78,000 dwt, for a total of 19.7M dwt delivered in 2018 and estimates that around 113 units equivalent to 25.5M dwt are expected to be delivered in 2019.
In the first three months of 2019, Banchero Costa recorded the delivery of 54 crude tankers for a total of 10.8M dwt, compared to 29 units equivalent to 2.8M dwt during the same period in 2018.
There have been very few tankers sold for recycling so far in 2019 and Banchero Costa noted that in the first three months of 2019 six crude tankers were reported scrapped, comprising of three Suezmax tankers (0.45M dwt), and three uncoated Aframax tankers (0.32M dwt), compared to 19 crude tankers equivalent to 3.19M dwt reported demolished during the same period in 2018.
Crude tanker newbuilding orders have been firm, with Banchero Costa noting that in the first three months of 2019, 18 crude tankers amounting to 4.54M dwt were ordered, comprising of 12 VLCCs, five Suezmax tankers and one uncoated Aframax tanker, compared to 18 crude tankers totalling 5.13M dwt ordered during the same period in 2018.
The broker noted newbuilding prices have remained flat so far this year with a small lift in secondhand prices.
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