While the oil tanker market (despite an increase in demolition) continued to be burdened by overcapacity and low freight rates, the LNG tanker market is booming driven by increased LNG demand from Asian economies (in particular China, Japan, South Korea and India). The high number of new LNG carrier orders and deliveries in 2018 reflects this.
In 2018, 76 orders for LNG carriers comprising a capacity 11.6 mill. m3 have been placed at shipyards according to the latest ISL Shipping Statistics and Market Review. During 2018, the LNG capacity increased by ~10.7 % already, reaching 82 mill. m3 at the start of 2019. With an order book comprising 136 LNG carriers with 21 mill. m3, the fleet expansion looks set to continue. At the same time, demolitions of oil tankers nearly doubled in 2018 compared with 2017. 231 oil tankers with a capacity of more than 21.5 mill dwt were sent to South East Asian scrapping yards in 2018 (the highest tanker recycling since 1985).
The ISL SSMR 2019-3 highlights various developments surrounding the major tanker markets and is available via our Webshop and has just been sent to subscribers.