Transparency Market Research has released a new market report titled “Global Crude Oil Carriers Market, by Vessel Type (VLCC/ULCC, Suezmax, Aframax, and Panamax) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2016–2024.” According to this report, the global crude oil carriers market was valued at US$ 160 Billion in 2015 and is projected to reach US$ 217 Billion by 2023 at a CAGR of 3.5% from 2016 to 2024.

Shipping of petroleum liquids such as crude oil comprises several different operations, each of which signifies a potential source of evaporation loss. Crude oil is transported from production facilities to refineries by crude oil carriers, rail tank cars, barges, pipelines, and tank trucks. Coastal tank vessel trades are functioned by crude carriers, tank barges, and product tankers. Crude carriers serve the West Alaska coast crude oil trades. Crude oil carriers are generally referred to as oil tankers which transport crude oil from one location to another. Oil tankers are designed for the bulk transportation of oil. Tanker shipping provides a convenient way of transporting bulk liquid for international seaborne trade. Transportation rates in the shipping industry are determined by time charter equivalent. Oil tankers have become an integral part of the transportation process.

The crude oil carriers market has been segmented into four regions: North America, Europe, Asia Pacific, and Rest of the World. Asia Pacific held the largest share of 41% of the crude oil carriers market in 2015 as several countries in Asia Pacific, such as China, Japan, Malaysia, and South Korea, own and operate majority of the crude oil carriers. In Europe, Greece alone owns and operates 17% of the crude oil carriers globally in 2015.

In 2015, shipping rates for the some of the largest tankers, including ULCCs and VLCCs, transporting crude oil to Asia Pacific peaked at just above US$ 90,000 a day as countries such as China stored low cost crude oil. Crude oil carriers also became a medium of floating storage, as some energy traders and companies stored their crude oil supplies when the futures price was higher than the spot price. Majority of the demand for crude oil carriers is generated from Asia Pacific, particularly China despite its slowing economy. Crude oil from South America or West Africa is transported to Asia Pacific, as the U.S. has consumed less imported crude oil, owing to the shale oil boom. China is a significant driver for crude oil carrier demand as an oil importer. Voyages to Asia Pacific are long haul which acts as one of the major catalysts for shipping rates. Long haul means that ships are in use for longer duration. As of 2014, about 20 to 25 of the world’s 977 supertankers, which can hold two million barrels and are known as very large crude carriers, are in operation as floating storage. Additionally, about half of these are waiting to discharge cargo and are looking for buyers.
Source: Transparency Market Research