Fleet Availability and Inventory


Supply and Demand
The types and volumes of refined petroleum products transported at sea and the routes that these cargoes travel will ultimately determine the demand for tankers. Tanker demand is often expressed in ton-miles and can be measured as the product of the volume of oil carried (measured in metric tons) multiplied by the distance over which it is carried (measured in miles). Tanker demand or the lack thereof, of course, ultimately determines tanker availability. Any number of factors that shape the world economy and the global thirst for both crude oil and refined petroleum products will come into play to determine the supply of tankers available in your particular market.

Why Tanker Availability Fluctuates
Tanker availability fluctuates, in part, as a function of seasonal issues. Historically, oil trade and charter rates increase in the winter months and decrease in the summer months. Because of the relatively long distances of ocean transportation and delivery time windows, oil traders will typically trade on contracts that do not make delivery for two to three months in the future. Just as they anticipate demand, so does the savvy ship broker. No one has more experience in this way than does your Soundtanker broker. The supply and availability of tankers, sometimes measured in deadweight tons, can be impacted by several factors including the age profile of the global fleet. With aging, single hull tank vessels facing mandatory phase out, the supply of ships available to trade in certain trading pattern can shrink or swell, depending largely on the delivery schedule of new replacement tonnage and by the number of vessels removed from the equation to be scrapped. Newbuilding activity is highly correlated to increases and decreases in charter rates, with regular prognostications on how an anticipated future “glut” of one particular type of vessel will affect both availability and rates. Overcapacity in any market, for any reason, will depress charter rates significantly. Timing your charter or freight requirements to anticipate market and inventory fluctuations – and take advantage of these metrics – is critical. Your Soundtanker broker stays ahead of this curve at all times.

Planning Your Charter
The tanker industry provides seaborne transportation for all manners of liquid cargoes, including crude oils, refined petroleum products such as gasoline, mineral spirits, naphtha, jet fuel, kerosene, gasoil and residual fuel oil, as well as a broad range of edible bulk cargoes. The price for transporting any one of these grades can fluctuate wildly from one to the other, depending on the number of potential subjects available in any market, at any time. Chartering a vessel to carry refined products for one voyage will be fixed based on what is known as the tanker spot market freight rate. That rate will depend on the type of vessel you hire, its age, geographical positioning and what it is best designed to do. A successful charter will involve advance planning to ensure that the tonnage you require is available in sufficient numbers to ensure that you can meet the needs of your cargo trading patterns. Soundtanker brokers keep detailed and accurate track of fleet inventories and regional availability, and negotiate the best possible rates reflected in those variables. Call your Soundtanker broker to get started.