The oversupplied tanker market may find some respite with the deliveries of newly-built ships expected to fall by about 30% for crude carriers and 50% for product vessels in deadweight terms after the first quarter of next year, ship broker EA Gibson said late last week.
In a research note published late Friday, it said the pace of tanker ordering has slowed due to listless economic recovery and difficulty in obtaining finance.
"At the same time, asset values have continued to tumble. The implementation of a whole tranche of legislation over the next few years is likely to accelerate the removal of tonnage," the note said.
"However, with current earnings offering little encouragement for new investment, we do not envisage an imminent kick start to another round of fresh ordering."
The newbuilding tanker deliveries - after peaking in 2009 with more than 400 crude and product tankers entering the market - will fall close to 270 this year, the report said.
"Despite this significant fall in number, the deadweight tonnage total has remained fairly constant for the past three years," the report said, adding that around 700,000 dwt would be added this year on top of last year's total.
This year close to 59 VLCCs and 60 Suezmax tankers - one newbuilding vessel entering the market every six days - would be delivered, according to the report.
A VLCC typically loads up to two million barrels of crude or fuel oil, while a Suezmax tanker can hold around one million barrels of oil.