CPP/Chemical Fleet Profile
Jan. 30, 2018
The product tanker and chemical tanker fleets reflect their more recent evolutions, particularly on the larger segments. Correspondingly, owners’ interest is skewed towards LR2 (coated Aframaxes) and MR2 (Chemical) tankers with a surprising disinterest for new LR1 orders. As of January 2018, we calculate the orderbook percentage of LR2s and LR1s at 15% and 6%, down from 20% and 12% at the same time last year, respectively.
The LR2 segment is a very modern fleet with 72% of the fleet aged 10 years or younger while a notable ageing for LR1s has increased the 11-15 year range to 44%, with 51% 10 years of younger. In the MR segments, there is a clear preference by owners towards the chemical fleets, with traditional product tankers (along with IMO III designated vessels) materially older than the chemical tankers of the same size segments. By comparison, we note that 48% of the MR2 product tanker fleet is under the age of 10; with the current orderbook percentages showing a continuation of this trend.
As the clean and chemical fleets age over our forecast period, we expect an acceleration of deletion activity above historical levels, which supports a decline in net fleet growth through 2020 and leads us to forecast a better freight rate environment over this period when compared to 2017.
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