The severity of the tanker slump, and the fact that it will persist for some time into the future, have led many of those involved in the industry to consider ways in which the tanker surplus can be reduced, and ultimately eliminated in order to improve the state of the tanker market. The most direct action is the cancellation of new building orders. Owners started to pursue this course of action around the middle of 1974 and since that time almost 60 million dwt has been cancelled. Given the probability of a maximum 8% annual growth in oil demand, a balance in the tanker market can only be achieved by the introduction of one or more of the measures currently being contemplated by INTER-TANKO and IMIF, such as accelerated scrapping (possibly in the form of a scrap and build policy) or a coordinated lay-up scheme, or the universal acceptance of segregated ballast. The most area, for new construction is in the up to 70,000 dwt class where surpluses could well disappear before 1980. Freight rates for such small ships would then rise at a faster rate than for medium and VLCC's.

  • Corporate Authors:

    Institute of Petroleum

    61 New Cavendish Street
    London W1M 8AR,   England 
  • Authors:
    • Carpenter, A
    • Drewry, H P
  • Publication Date: 1976-11

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00157648
  • Record Type: Publication
  • Source Agency: Engineering Index
  • Files: TRIS
  • Created Date: Aug 15 1977 12:00AM