Swing tankers unlikely to join chemical trading fleet until 2021
IMO-class tankers which swung to product trading in 2Q20 due to high freight rates and floating storage requirements are unlikely to join the chemical trading fleet until 2021.17 Sep 2020: Floating storage: a ticking time bomb for the crude tanker market
There is no denying that a sudden plunge in oil demand on account of COVID-19 proved to be a blessing in disguise for the oversupplied crude tanker market in 2Q20, which led to a surge in onshore and offshore storage of crude in March-April. While an increase in onshore storage of cheap oil by refineries boosted tonnage demand, a rise in floating storage of crude oil squeezed tonnage supply in the crude tanker market. Consequently, freight rates in the crude tanker market climbed to record highs in March-April 2020, when oil demand was at multi-year lows.21 Aug 2020: Chinese port inventories flooded with US MEG supply
US cargoes are getting discharged at Chinese ports with heavy MEG volume. The trade pattern has the potential to support freight rates on long-haul routes and increase spot activity in 2H20.
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