Industry Note No. 5 - What's Supply Got To Do With It?

Net fleet growth has historically been a primary factor that influences freight rates in the long-term, while short-term supply disruptions such as inclement weather, port delays, slow steaming and vessel maintenance can also cause rates to be volatile and less predictable. Market participants have been keeping a watchful eye on tanker supply developments this year as many of the vessels from the bloated orderbooks of the previous years are expected to deliver, triggering concerns of a weakening tanker spot market. So how much net fleet growth have we recorded for each tanker sector in the first quarter?