VLCC oversupply relieved by slow deliveries

This is despite record crude oil liftings from the Middle East and anticipated demand growth of around 2% in for 2011.

Some relief comes from late deliveries; not all of t he 47 VLCC newbuildings scheduled for handover in the first half entered the market on time. For the first two quarters of this year, over 20 VLCC deliveries were inked in at the rate of more than one every week. In the event, Braemar recorded fewer than 20 VLCC deliveries in both quarters to date: 19 and 15 respectively.

As from 1 July 2011, the VLCC fleet was 559 ships including 22 non-double hull units, with 150 ships in the orderbook. In deadweight capacity, the VLCC fleet has grown by 5.6% in 2011, from 160,900,000dwt on 1 January, to 169,900,000dwt on 1 July. Braemar considers it likely that further slippage from delivery schedules will happen in the coming quarters.