What does the crude tanker sector look like during the pandemic?
Updated: Jul 22, 2020
Decline in crude oil consumption is 7 times bigger than the largest quarterly decline in the 2008-09 recession
Number of active rigs are down by 30%
VLCC & Suezmax earnings are over 30% higher from the beginning of the year
Approx. 10% of the global VLCC fleet is being used for floating storage during 1st and 2nd Qtr of 2020
Roughly 200 crude oil tankers are on storage duty
Because time charter rates are high, hardly any scrapping has taken place, while 5.4 million dwt has been added
7% of the tanker fleet has been busy with scrubber retrofit projects
20% of the crude tanker fleet has scrubbers outfitted
8% newbuild order coming online in the next 2 years
10% of the crude oil tanker fleet over 20 years old
How are things going to change when we emerge from the pandemic?
Let me know your thoughts.