Market outlook for the aframax sector from 2010 to 2015

• Main Author: Xiao, Meng
• Other Authors: School of Civil and Environmental Engineering
• Format: Final Year Project
• Language: English
• Published: 2011
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/45401
• Institution: Nanyang Technological University

The tanker freight market is affected by the global economic environment, as the global economy recovers from the subprime crisis, the question whether now is the right time to invest in the tanker market is raised.As the driver of economic recovery, Asia Pacific region will enjoy fast growth in the next few years; this would lead to an increase in demand for crude oil since oil is still the main source of energy. But due to the shrinking regional supply caused by drying oil fields and growing domestic demand from the oil exporting countries, the demand will have to be met by producers that are further away from the consumers. This will cause a drop in intra-regional crude trade. Since Aframax ships (80-120,000 DWT) mainly focus on intra-regional trades, the freight for this segment will be affected negatively. On the other hand, the supply of ships will still be firm due to mass construction before the crisis. Lack of demand and excessive supply will keep the freight low in the region.