NO: DELENG / 2017 / 70663
official media partner of national maritime foundation
Shipping Brokers Report Surge in Tanker Newbuilding Orders in Early 2023
By Sea and Coast | 16/03/2023
Shipping industry observers have been closely monitoring recent developments in the tanker newbuilding market, as an uptick in orders has been observed in the first two months of 2023. According to a report by prominent shipping brokers, SSY, there were 34 product and crude tanker newbuildings contracted during this period, with a total deadweight tonnage (dwt) of 2 million.
This is an encouraging sign for an industry that has been struggling in recent years, with declining tanker orders and a shrinking orderbook. However, the report also notes that the overall tanker orderbook is still declining, with deliveries outpacing new orders.
Despite the recent surge in orders, the combined tanker orderbook as a percentage of the fleet was only 3.7% as of the end of February, down from 4.2% at the start of the year and 7.8% at the beginning of 2021. This trend has been attributed to a variety of factors, including higher asset prices, shipyards favoring higher-value gas carriers and container ships orders, and uncertainty over the use of sustainable fuels in the future.
One notable development in the recent surge of orders was the four Suemaxes ordered in the first week of March, which pushed the total tonnage to 2.8 million dwt. These tankers are expected to be built with the latest technological advancements, including fuel-efficient engines and enhanced safety features.
Industry experts are cautiously optimistic about the recent increase in orders, but they warn that sustained growth in the tanker newbuilding market will depend on several factors. These include stable demand for crude oil and petroleum products, favorable freight rates, and continued investment in sustainable technologies.
As the shipping industry continues to evolve and adapt to changing market conditions, it will be interesting to see how the tanker newbuilding market develops in the coming months and years.