Analysis and future outlook of tanker sector in intra-asia shipping

• Main Author: Ng, Alvin Yong Han
• Other Authors: Lam Siu Lee
• Format: Final Year Project
• Language: English
• Published: 2014
• Subjects: DRNTU::Engineering::Maritime studies
• Online Access: http://hdl.handle.net/10356/59997
• Institution: Nanyang Technological University

The intra-Asia maritime trade has grown at a significant pace in recent years. This growth has presented numerous opportunities to ship owners and operators. The region is fast becoming the unrivalled centre for oil trade in the world with China expected to take over the United States (US) as the world’s largest oil consumer by 2030. The major commodity dominating bulk shipping in Asia comes from the energy trade. The commodities from the energy trade consist of coal, liquefied gas, crude oil and oil products. Of the 4 major energy commodities traded, crude oil and oil products are classified under the tanker market segment due to their mode of transportation. The aim of this report is to analyze the current trade patterns in the tanker market followed by identifying the future opportunities, threats and uncertainties of intra-Asia tanker shipping. The result of the analysis has shown that Asia’s tanker demand will continue to increase as oil continues to be the more viable energy source, with the shipping market recovering from a recession. However there are numerous inherent threats and uncertainties in the region’s tanker market. The threats faced by tanker owners and operators include depleting oil fields in the region, competition with alternative modes of transportation, overcapacity and an increasingly competitive market. In addition, the region’s tanker trade is fraught with uncertainties due to existing conflicts between Asian countries, the shale gas revolution and the possible entry into force of the Ballast Water Convention. All these could throw the region’s tanker trade off-track amidst the strong recovery if not managed appropriately by tanker owners and the relevant stakeholders.