BIMCO – Tanker Shipping Market Overview & Outlook, Aug 2024

The Tanker Shipping Market Overview & Outlook for August 2024 predicts a strengthening of the supply/demand balance in 2024, driven by strong demand in the second half of the year, with a slight weakening in 2025 due to increased newbuilding deliveries. The growth of product tanker demand is expected to outpace supply in 2024, but slow down in 2025 as ships return to normal routings, resulting in rate and price increases in 2024, especially in the product tanker sector. The global economy is projected to grow 3.2% in 2024 and 3.3% in 2025, with slowing growth in key countries like the US, China, and India. Crude supply is estimated to increase in both years, driven by countries like the US, Brazil, and Guyana, with oil demand also expected to grow mainly in Asia. The assumptions of Red Sea rerouting affecting demand increases in 2024, as well as growth estimates for the crude and product tanker fleets in 2024 and 2025, are outlined. Despite weaker cargo volumes in the first half of 2024, a recovery is forecasted for the second half, with a stronger overall market performance expected in 2024 compared to 2023.