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“THE STRUCTURE OF THE PROGRAMME HAS HELPED ME BUILD A STRONG FOUNDATION OF HOLISTIC KNOWLEDGE. I NOW FEEL MUCH MORE CONFIDENT ENGAGING WITH COLLEAGUES FROM DIFFERENT AREAS OF THE ORGANISATION DUE TO MY DEEPER UNDERSTANDING OF THEIR WORK. THE BLUE MBA HAS PROPELLED MY CAREER JOURNEY, AND I HIGHLY RECOMMEND IT TO ANYONE LOOKING TO CHALLENGE THEMSELVES BOTH PERSONALLY AND PROFESSIONALLY.” Chrispin Niyongabo Head of Control at Hafnia Class of 2025 Discover more about the Blue MBA from Programme Director, Irene Rosberg, at ir.mba@cbs.dk or visit cbs.dk/bluemba EXECUTIVE MBA IN SHIPPING AND LOGISTICS (THE BLUE MBA) A unique industry needs a unique MBA. Take your career to the very top international level by joining the world’s premier Executive MBA designed specifically for shipping and logistics professionals. 1st Quarter 2025www.tankershipping.com Ammonia tankers Understanding the LNT A-BOX containment system Industry profile Prime Tankers on ballast water, operations and regulations Pollution New ways to tackle underwater radiated noise Market trends Supply constraints a drag on chemical tanker market london@register-iri.com www.register-iri.com International Registries (U.K.) Limited in affiliation with the Marshall Islands Maritime & Corporate AdministratorsCONTENTS www.tankershipping.com Tanker Shipping & Trade | 1st Quarter 2025 1st Quarter 2025 | volume 19 issue 1 4 15 Regulars 3 COMMENT 6 FLEET DATA 48 LAST WORD Market trendline 4 Examining the supply constraints impacting the chemical tanker market Area report: Asia and Oceania 12 Insights revealed by tonne-mile demand 15 The changing face of China’s crude trade routes 16 Trade patterns among the region’s product tankers 18 Australia’s fuel security concerns 20 How CO2 shipping is developing across Asia-Pacific Onboard carbon capture and storage 22 Assessing the benefits and limitations of this decarbonisation strategy Fleet performance 24 Improving performance with digital tools Fleet efficiency and performance analysis 28 CMB.TECH’s Gökay Yayla on fleet performance 30 Reducing emissions from mid-sized tankers Ammonia tankers 32 Examining the LNT A-BOX containment system Company profile 34 The history and likely development of the Northern Lights projects Charterer profile 36 Orlen’s growing impact on the tanker chartering market Terminal operations 38 Novatex’s Zeeshan Memon on safety, efficiency and innovation 3032CONTENTS Tankers & Markets Editor: Craig Jallal t: +44 20 8370 1717 e: craig.jallal@rivieramm.com Senior Production Editor: Kevin Turner t: +44 20 8370 1737 e: kevin.turner@rivieramm.com Brand Manager – Sales: Ian Pow t: +44 20 8370 7011 e: ian.pow@rivieramm.com Head of Sales – Asia: Kym Tan t: +65 6809 1278 e: kym.tan@rivieramm.com Senior Creative Manager: Mark Lukmanji t: +44 20 8370 7019 e: mark.lukmanji@rivieramm.com Chairman: John Labdon Managing Director: Steve Labdon Executive Editor & Head of Business Relations: Edwin Lampert Managing Editor: John Snyder Published by: Riviera Maritime Media Ltd Mitre House, 66 Abbey Road Enfield EN1 2QN, UK www.rivieramm.com ISSN 1753-7029 (Print) ISSN 2051-0578 (Online) ©2025 Riviera Maritime Media Ltd Disclaimer: Although every effort has been made to ensure that the information in this publication is correct, the Author and Publisher accept no liability to any party for any inaccuracies that may occur. Any third party material included with the publication is supplied in good faith and the Publisher accepts no liability in respect of content. All rights reserved. No part of this publication may be reproduced, reprinted or stored in any electronic medium or transmitted in any form or by any means without prior written permission of the copyright owner. This product is from sustainable managed forests, recycled and controlled sources – PEFC. To purchase more than one copy or for corporate subscriptions please contact Sally Church e: sally.church@rivieramm.com t: +44 20 8370 7018 Subscribe online Tanker Shipping & Trade | 1st Quarter 2025 www.tankershipping.com Subscribe Today A year’s subscription to Tanker Shipping & Trade for £220 includes: • 4 print issues of the magazine, sent over a 12 month period. • Digital edition library access. 40 48 1st Quarter 2025 | volume 19 issue 1 Biofuels 40 The challenges of transporting biofuels by tanker Industry profile 43 Prime Tankers’ Karan Keswani on ballast water, operations and regulations Regulations 44 Tackling underwater radiated noise Next issue Main features include: Area report: Greece and Cyprus; CO2 tankers; Vetting and inspections; Mooring and STS operationswww.tankershipping.com Tanker Shipping & Trade | 1st Quarter 2025 “ COMMENT | 3 CO2 shipping is emerging as a new prospective market within the tanker sector” Asia Pacific tanker market navigates shifting currents Craig Jallal Tankers & Markets Editor T he Asia Pacific tanker market is undergoing a profound transformation as shifting trade policies, fuel security concerns, and decarbonisation pressures reshape regional shipping routes. Tonne-mile demand is fluctuating as nations adjust their crude oil sourcing, regulatory frameworks evolve, and alternative fuels begin to take hold. The geopolitical landscape has introduced a level of complexity not seen in decades. Sanctions on Russian and Iranian crude have forced refiners in China to adapt, with independent oil terminals at Dalian, Shanghai, Zhoushan, and Huizhou stepping in to handle sanctioned shipments. These facilities, however, are limited in capacity and bring additional freight costs, creating bottlenecks in crude supply chains. This has prompted Chinese refiners to adjust their crude import strategies, reinforcing trade relationships with Russia while employing ship-to-ship transfers in Malaysian waters to keep Iranian crude flowing. Alternative fuels While China remains a dominant crude importer, the broader region is witnessing a recalibration of tonne-mile demand. Japan’s crude oil import requirements have fallen in recent years. This shift reflects the country’s gradual move towards alternative fuels and greater efficiency in energy consumption. South Korea, another major refining hub, has also seen a contraction in its crude shipping demand, albeit at a much smaller scale. In contrast, Singapore has seen tonne-mile demand rise, highlighting the country’s strengthening position as a regional refining and bunkering centre. Australia presents a different challenge, grappling with fuel security concerns despite being an oil producer. Much of its crude is exported due to its high quality and low sulphur content, making it more suitable for foreign refineries than the country’s two remaining facilities. Australia’s limited refining capacity leaves it highly dependent on imported fuels, which raises concerns over supply resilience in times of disruption. The situation has prompted Canberra to introduce support measures, including financial incentives for its last two refineries, but the long-term outlook remains uncertain. Against this backdrop, CO2 shipping is emerging as a new prospective market within the tanker sector. Countries with limited sequestration capacity, such as Japan, South Korea, and Singapore, are looking to transport CO2 to storage hubs in Australia, Malaysia, Indonesia, and Brunei. The challenge, however, lies in the lack of regulatory cohesion across the region. Without clear guidelines on CO2 purity, liability transfer, and monitoring, investment in liquefied CO2 shipping infrastructure remains constrained. Regionally there is a call for governments to react in a clear and rapid manner to establish binding agreements. External pressures The Asia Pacific tanker trade is being redefined by external pressures and domestic policy choices. The region’s largest crude importers are adapting to new geopolitical realities, while refining and storage strategies continue to evolve. As decarbonisation efforts gain momentum, traditional shipping patterns will be further disrupted, creating both challenges and opportunities for the industry. TSTTanker Shipping & Trade | 1st Quarter 2025 www.tankershipping.com 4 | MARKET TRENDLINE Chemical tanker market faces tight supply outlook Ageing fleets, limited newbuilds, and shifting trade patterns shape the supply-demand balance in the chemical tanker market for 2025 and beyond T he chemical tanker market is heading into a period of constrained supply, with ageing fleets, cautious investment in newbuildings, and evolving trade patterns all playing key roles in shaping the sector’s outlook. Simpson Spence Young (SSY) head of research – chemicals, Plamen Aleksandrov, highlights that while demand remains steady, the availability of modern tonnage is tightening, potentially driving volatility in freight rates and asset values. The current global chemical tanker fleet is ageing, with a substantial share of vessels exceeding the 20-year mark. According to SSY’s research: “A considerable number of coated and stainless-steel tankers are now entering a phase where operators must decide between costly retrofits or scrapping.” This is especially pertinent as regulatory compliance costs mount, further weighing on the economics of older vessels. While demolition activity has remained relatively low in recent years, SSY anticipates an uptick in scrapping as owners reassess the viability of keeping older ships in service. “The pace of recycling could accelerate in the latter half of the decade as stricter environmental standards come into force and charterers exhibit a growing preference for younger, more fuel-efficient tonnage,” Mr Aleksandrov states. Newbuilding investment and shipyard constraints Despite the ageing profile of the fleet, investment in new chemical tankers has been measured. Mr Aleksandrov reports that “owners are reluctant to place speculative orders, given uncertainties surrounding future fuel choices and rising shipbuilding costs.” The orderbook remains historically low compared to previous cycles, a trend driven by concerns over regulatory uncertainty and limited available shipyard slots. Additionally, shipbuilders are prioritising LNG carriers and large container vessels, limiting capacity for specialised chemical tankers. This dynamic is leading to longer lead times and higher prices for new orders. “Delivery slots at leading yards are now stretching into 2027, with only select opportunities remaining for mid-sized stainless steel and coated tankers,” he notes. Financing challenges also play a role. “Traditional lenders remain cautious about backing newbuild projects, particularly for speculative orders,” he observes. Alternative (ABOVE) Plamen Aleksandrov (SSY): “Owners and charterers will have to navigate a tighter supply market in 2025” (source: SSY)MARKET TRENDLINE | 5 financing structures are emerging, but they often come with higher costs, making new investments less attractive for some owners. Supply-demand balance The tightening supply situation is juxtaposed against a resilient demand backdrop. Chemical trade flows remain robust, particularly in key markets such as Asia and the Middle East, where new petrochemical projects are driving movements of feedstocks and finished products. “Growth in demand for speciality chemicals and bio-based products is underpinning steady chartering activity,” according to Mr Aleksandrov. However, the supply-demand balance remains delicate. “A combination of slow fleet renewal, limited yard capacity, and regulatory pressure is creating conditions for a potential supply crunch from 2025 onwards,” he warns. While the market is not facing immediate shortages, the gradual reduction in available tonnage could push freight rates higher, especially for vessels with premium cargo-handling capabilities. Trade routes and market shifts Trade flows are evolving, with regional imbalances shaping demand for different vessel types. He highlights that “increased US chemical exports and shifts in European refinery production are leading to longer voyage distances, supporting tonne-mile demand.” At the same time, structural changes in China’s domestic chemical sector could alter import requirements, influencing trade routes and vessel deployment strategies. The Middle East remains a key player in the market, with production expansions in Saudi Arabia and the UAE expected to generate additional demand for chemical tankers. However, Mr Aleksandrov notes that “geopolitical uncertainties and potential shifts in global trade policies could introduce volatility in cargo flows.” Outlook for operators and investors Given the tightening fleet supply and stable demand outlook, chemical tanker operators face an environment where asset values could appreciate, particularly for modern, well-specified vessels. “Well-positioned owners with newer tonnage may benefit from favourable rate developments, while older vessels could face increasing off-hire time due to charterer preferences,” he concludes. For investors, the key challenge remains balancing the high costs of newbuilds against the potential upside of rising charter rates. “Market participants must navigate a landscape where fleet renewal is necessary but capital-intensive, requiring strategic decisions on timing and asset selection,” he advises. Beyond 2025, the chemical tanker sector finds itself at a crossroads. Fleet fundamentals point to a constrained supply scenario, with ageing vessels exiting the market faster than new tonnage is entering. How owners, charterers, and financiers respond to these conditions will determine whether the market stabilises or enters a prolonged phase of volatility. TST (BELOW) An illustration of Odfjell’s chemical tanker Bow Orion featuring suction sails (source: Odfjell) WELL-POSITIONED OWNERS WITH NEWER TONNAGE MAY BENEFIT FROM FAVOURABLE RATE DEVELOPMENTS ” “Tanker Shipping & Trade | 1st Quarter 2025 www.tankershipping.com 6 | FLEET DATA Tanker deliveries The latest tanker deliveries into the fleet and expected deliveries BUILD MONTH NAME SIZE (DWT) VESSEL TYPE ENGINE FUEL BENEFICIAL OWNER COMMERCIAL MANAGER OctTouba Tawfekh2,800SMALL CLEAN TNKRHFODarou Khoudoss SADarou Khoudoss SA OctBochem Brisbane25,00025 STAINLESS STEELHFOCMB TechStolt Tankers OctThetis Leona20,000J19 STAINLESS STEELHFOKorea ZincKorea Zinc OctHedda Knutsen154,300SUEZMAX SHUTTLE TNKR (Dirty)HFO Knutsen NYK Offshore Tankers Petrobras OctHelios156,800SUEZMAX TNKRHFOCMB TechCMB Tech OctAlejandro3,100SMALL DIRTY TNKRHFOLintas Utama Line PT GHS Maritim Indonesia OctHang Hai You 2213,800SMALL CLEAN TNKR (Chemical / Product)HFO Ningbo Yongwang Shipping Ningbo Yongwang Shipping OctXT Exploration13,000SMALL CLEAN TNKR (Chemical / Product)HFOXingtong ShippingXingtong Shipping OctFure Viskar18,000SMALL CLEAN TNKR (Chemical / Product)LNGFuretank RederiFuretank Rederi OctOdette Oasis6,700SMALL CLEAN TNKR (Bunkering)LNGOpulent Maritime South Marine Ship Management OctPearl Kaja8,000SMALL CLEAN TNKR (Bunkering)HFOConsort BunkersConsort Bunkers OctZhong Ran 232,200SMALL CLEAN TNKRHFO Chimbusco Pan Nation Shipping Chimbusco Pan Nation Shipping OctSFL Tigris115,000AFRAMAX TNKRHFOSFL Corporation LtdVitol OctCSM Wyvern3,000SMALL CLEAN TNKRHFO Central Star Marine Supplies Central Star Marine Supplies Oct Cleanseas Friendly 1,100SMALL CLEAN TNKRHFOShipmateShipmate OctHeng Hui 1013,500SMALL CHEMICAL TNKRHFO Shanghai Dihai Logistics Co Shanghai Dihai Logistics Co OctPearl Liberty6,800SMALL CHEMICAL TNKRHFOConsort BunkersConsort Bunkers OctPrecious Adelaide50,000MR2 TNKR (Chemical / Product)HFONissen KaiunNissen Kaiun OctMintaka49,700MR2 TNKR (Chemical / Product)HFO Bank of Communications Financial Leasing ASM Chartering OctCape Andiamo50,500MR2 TNKR (Chemical / Product)HFOCape Shipping SA Prime Tanker Management OctGolden Sun50,000MR2 TNKR (Chemical / Product)HFO Zhoushan Changhong International Thames Bay Shipping OctMurmure50,000MR2 TNKR (Chemical / Product)HFO China Development Bank Financial Leasing Hengyi Petrochemical OctChem Ramblas33,400HANDY CHEMICAL TNKRHFOACE TankersACE Tankers OctSanthia115,800LR2 TNKRHFONeda MaritimeNeda Maritime OctNave Photon115,000LR2 TNKRHFO Bank of Communications Financial Leasing Navios Maritime Partners LP NovToska158,400SUEZMAX TNKRHFO Bank of Communications Financial Leasing TMS Tankers NovIpanema158,400SUEZMAX TNKRHFO Bank of Communications Financial Leasing TMS Tankers NovOrion156,800SUEZMAX TNKRHFOCMB TechCMB Tech NovWindpower8,800SMALL DIRTY TNKR (Asphalt)HFO Queensway Navigation Queensway Navigation NovYan Zhi Lun5,100SMALL CLEAN TNKR (Chemical / Product)HFOUndisclosedUndisclosed NovFairchem Prestige26,300SMALL CHEMICAL PARCEL TNKRLNG Fukuoka Shipbuilding Fairfield Chemical Carriers Inc 2024www.tankershipping.com Tanker Shipping & Trade | 1st Quarter 2025 FLEET DATA | 7 BUILD MONTH NAME SIZE (DWT) VESSEL TYPE ENGINE FUEL BENEFICIAL OWNER COMMERCIAL MANAGER NovYong Sheng 3913,600SMALL CLEAN TNKR (Chemical / Product)HFO Zhoushan Yongsheng Shipping Zhoushan Yongsheng Shipping NovBow Tiger25,900SMALL CHEMICAL PARCEL TNKRHFOKinriki KisenKinriki Kisen NovPheasant20,800J19 STAINLESS STEELHFOAldebaran MaritimeTanba Kisen YK NovNavig8 Executive49,100MR2 TNKR (Chemical / Product)HFONavig8Navig8 Asia Pte NovBS Haiphong13,000SMALL CLEAN TNKR (Chemical / Product)HFOYentecBS Shipping NovPearl Loyale6,800SMALL CHEMICAL TNKRHFO China Huarong Financial Leasing Consort Bunkers NovAn Yun50,100MR2 TNKR (Chemical / Product)HFOCPC Corp TaiwanCPC Corp Taiwan NovHai Da 8694,300SMALL CLEAN TNKRHFO Xiamen Tonghai Shipping Xiamen Tonghai Shipping Nov Hua Yun Tong Yuan 6,300SMALL CHEMICAL TNKRHFOSino Ocean ShippingSino Ocean Shipping NovSaiph49,800MR2 TNKR (Chemical / Product)HFO Bank of Communications Financial Leasing ASM Chartering NovJian Xing 1683,500SMALL CHEMICAL TNKRHFOZhoushan HexingZhoushan Hexing NovQing Hai You 774,500SMALL CLEAN TNKRHFO Zhoushan Qinghai Shipping Zhoushan Qinghai Shipping DecZhuo Yuan 683,300SMALL CHEMICAL TNKRHFO Zhoushan Zhuoyuan Shipping Zhoushan Zhuoyuan Shipping DecPearl Lily6,800SMALL CHEMICAL TNKRHFO CITIC Financial Leasing Consort Bunkers DecNew Argosy114,800LR2 TNKRHFO China Merchants Shipping China Merchants Shipping DecValentin Pikul69,300LR1 SHUTTLE TNKRHFORosnefteflotRosnefteflot DecHua Yun Li Yuan7,500SMALL CHEMICAL TNKRHFO Hua Hai Petroleum Transport Hua Hai Petroleum Transport DecYuan Dong Li Lin4,500SMALL CHEMICAL TNKRHFO Huizhou Huayi RongSheng Shipping Huizhou Huayi RongSheng Shipping DecDaiichi Meta Maru1,200SMALL CHEMICAL TNKRHFOMOL CoastalMOL Coastal DecDing Heng 316,400SMALL CHEMICAL TNKRHFO Shanghai Dingheng Shipping Shanghai Dingheng Shipping DecXing Tong 173,900SMALL CHEMICAL TNKRHFOXingtong ShippingXingtong Shipping DecMH Highlander114,000LR2 TNKRHFO Bank of Communications Financial Leasing ST Shipping DecXin Gang Long 373,500SMALL CHEMICAL TNKRHFO Ningbo Ganglong Shipping Co Ltd Ningbo Ganglong Shipping Co Ltd DecYu Zhou 314,300SMALL CHEMICAL TNKRHFO Zhejiang Daishan Yuyang Shipping Zhejiang Daishan Yuyang Shipping DecHe Shun 163,900SMALL CHEMICAL TNKRHFO Mao Ming Xiang Yuan Shipping Mao Ming Xiang Yuan Shipping DecKyokukai Maru5,600SMALL CLEAN TNKRHFOAsahi Tanker CoAsahi Tanker Co DecLoya 11,700SMALL CLEAN TNKRHFO Loya Gemi Tasimaciligi AS Loya Gemi Tasimaciligi AS DecMir Hana1,700SMALL CLEAN TNKR (Chemical / Product)HFOHANA MarineHANA Marine DecChinook I18,500SMALL CLEAN TNKR (Chemical / Product)LNGBank of AmericaUnion Maritime DecFure Vyl18,000SMALL CLEAN TNKR (Chemical / Product)LNGFuretank RederiFuretank Rederi DecSirius2,100SMALL CLEAN TNKRHFOOsaka Tanker CoOsaka Tanker Co DecNord Vignale50,000MR2 TNKR (Chemical / Product)HFOMeiho KaiunNorden DecTsuru Maru1,200SMALL CLEAN TNKRHFOKofuku Senpaku KKKofuku Senpaku KK DecYuan Xiang You 711,100SMALL CLEAN TNKRHFO Zhoushan Yuanxiang Shipping Zhoushan Yuanxiang Shipping DecKasuga Maru1,200SMALL CLEAN TNKRHFOTaketani Kaiun KKTaketani Kaiun KK Dec Xin Heng Yuan 788 12,200SMALL CLEAN TNKRHFO Shanghai Boyang Oil Transportation Co Shanghai Boyang Oil Transportation Co DecJin Wang You 1913,300SMALL CLEAN TNKRHFO Zhoushan Jinhaian Shipping Zhoushan Jinhaian Shipping DecGaruda 2500SMALL CLEAN TNKRHFOArsa Mega EnergiArsa Mega Energi 2024Next >