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Last Post: 1/15/2016 12:17:22 AM - Followers: 27 - Board type: Free - Posts Today: 0


Tanker rates are a function of the balance between two main factors:

  • Tanker demand
  • Tanker supply

View Current Tanker Rates

Tanker demand
An increase in tanker demand will generally have a positive effect on prevailing spot tanker rates.

Demand for conventional oil tankers is a function of two main factors:

  • World oil demand and supply, which determines the amount of crude oil and refined products available to be transported in tankers
  • The relative locations of oil production, refining and consumption, which affects the distance over which the oil or refined products are transported

The combination of these two factors creates "ton-mile demand", which is a measure of the amount of oil transported in tankers multiplied by the distance over which it travels.

Oil demand and supply
The tanker market cannot exist without the demand for oil and in particular how much of the demand can be met by domestic production / pipeline supply and how much needs to be imported on tankers. The main driver of oil demand is the global economy while population growth is also an important factor, particularly in the developing economies where the emergence of a growing middle class is leading to a rapid increase in vehicle ownership and therefore transportation fuel demand.

As of February 2010, the International Energy Agency estimates that global oil consumption will grow from 84.9 million barrels per day (or mb/d) in 2009 to 86.5 mb/d in 2010 as a result of the expected recovery in the global economy. The majority of the growth is expected to come from emerging economies led by China.

The distance factor
The longer the distance over which oil needs to be transported, the greater the number of ships are required to service the demand. The majority of known oil reserves are located in areas far from major consuming regions, which contributes positively towards demand for oil tankers. The distance over which crude oil or refined petroleum products are transported is determined by seaborne trading and distribution patterns, which are principally influenced by the relative advantages of the various sources of production and locations of consumption. Seaborne trading patterns are also periodically influenced by geopolitical events, such as wars, hostilities and trade embargoes that divert tankers from normal trading patterns, as well as by inter-regional oil trading activity.

Historically, the level of oil exports from the Middle East has had a strong effect on the tanker market as a whole due to the relatively long distance between this supply source and typical discharge points. Over the past few years the growing economies of Asia, and in particular China, have increased and diversified their oil imports, resulting in the growth of import volumes from longer haul producers such as those in the Atlantic Basin and an overall increase in transportation distances for tankers.

Limited growth in refinery capacity in developed nations (the largest consumers of oil in recent years) and increasing refinery capacity in the Middle East and parts of Asia where surplus capacity supports exports have also altered traditional trading patterns and contributed to an increase in transportation distances for products tankers.

Tanker supply
An increase in tanker fleet supply will generally have a negative effect on prevailing spot tanker rates.

The supply of oil tankers is a function of:

  • The construction and delivery of new vessels into the fleet
  • The removal of vessels for scrapping or conversion to other ship types

The level of new vessel orders is primarily a function of newbuilding prices in relation to current and prospective charter market conditions. Available shipyard capacity for newbuildings is another factor that affects tanker supply. The level of scrapping activity is primarily a function of scrap prices in relation to current and prospective charter market conditions and operating, repair and survey costs. Industry regulations also affect scrapping levels, such as the IMO mandated phase-out of single hull tankers which takes effect from 2010.

One-off factors can also impact tanker supply. Examples include the use of ships as floating storage and slow steaming, both of which have the effect of reducing available fleet supply


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Current Price
Bid Ask Day's Range
TNK News: Amended Statement of Ownership (sc 13g/a) 02:24 PM
TNK News: Amended Statement of Ownership (sc 13g/a) 02/09/2016 05:04:06 PM
TNK News: Report of Foreign Issuer (6-k) 11/18/2015 09:27:26 AM
TNK News: Prospectus Filed Pursuant to Rule 424(b)(5) (424b5) 11/18/2015 08:55:26 AM
TNK News: Amended Statement of Ownership (sc 13g/a) 11/06/2015 04:36:20 PM
News News Alert: Amended Statement of Ownership (sc 13g/a) 02/10/2016 02:24:28 PM
#185   Honestly....A buy at these prices. Ripcord01 01/15/16 12:17:22 AM
#184   taking a beating after parent TK cut the wy3134 12/18/15 09:52:44 AM
#183   Some great divy news...this should light a spark wiredawg 12/14/15 11:04:20 AM
#182   Seems to me, I constantly read a comparison wiredawg 12/04/15 02:06:18 PM
#181   $TNK recent news/filings stocktrademan 11/21/15 03:06:15 PM
#180   U.S. oil imports will rise in 2016 catdaddyrt 11/10/15 09:29:39 AM
#179   Time to take another ride here for 2016 catdaddyrt 11/10/15 09:00:36 AM
#178   $TNK recent news/filings stocktrademan 10/01/15 02:27:57 PM
#177   Teekay Tankers (TNK +4.2%) enjoys strong gains after Timothy Smith 09/04/15 11:34:52 PM
#176   Here's to TNK rocking on for the next wiredawg 06/14/15 05:53:19 PM
#175   $TNK recent news/filings stocktrademan 06/10/15 12:39:36 PM
#174   Again, thx for the reply...and I'm inline with wiredawg 06/04/15 12:10:23 PM
#173   to me this is a reputable company not RJ5 06/04/15 12:07:02 PM
#172   Thx for your quick, a little trickier wiredawg 06/04/15 11:46:05 AM
#171   yes RJ5 06/04/15 11:18:38 AM
#170   Question: is today's news (4Jun2015)released this morning considered wiredawg 06/04/15 10:57:34 AM
#169   Could be some interesting opportunities. Timothy Smith 05/12/15 08:43:02 AM
#168   And NAT kicked ass yesterday ;-) starbuxsux 05/12/15 02:12:20 AM
#167   Teekay Tankers (TNK -6.7%) is downgraded to Hold Timothy Smith 05/11/15 06:58:46 PM
#166   Don't forget NAT starbuxsux 05/09/15 12:47:33 PM
#165   LOL...I hear you... wiredawg 04/27/15 11:39:21 AM
#164   I got in TNK last week. TK and Uranium 04/26/15 03:51:14 PM
#163   Just as well the yahoos would ruin it. RJ5 04/26/15 12:09:49 PM
#162   I see "TNK" can't get no love from wiredawg 04/25/15 04:16:26 PM
#161   This one has been a sleeper for sometime. Ripcord01 02/24/15 10:48:50 PM
#160   I just got out at $6.25. This iheartweimers 02/19/15 12:24:07 PM
#159   These periodic sudden decent size drops in the MikeD248 02/19/15 12:14:03 PM
#158   Shorts covering, % reduced from 15% to 10% iheartweimers 02/19/15 10:42:36 AM
#157   Had a great quarter, beat estimates. This one docoroc2 02/19/15 10:23:22 AM
#156   Stock broke 52 week high yesterday. Been on Ripcord01 01/09/15 09:47:03 AM
#155   Hoping this holds well above the $5 mark wiredawg 12/17/14 08:27:57 PM
#154   $TNK DD Notes ~ stocktrademan 12/16/14 09:15:28 AM
#153   Earnings Call for Q3 2014 is out. iheartweimers 11/06/14 04:05:04 PM
#152   Not complaining just wondering why the up tick today? lowpsycho 07/22/14 12:11:18 PM
#151   I am hoping for a good return on lowpsycho 07/21/14 05:24:48 PM
#150   Yes it was on Friday. Though, I wiredawg 07/21/14 02:52:01 PM
#149   Nice return in price. lowpsycho 07/18/14 08:44:43 PM
#148   Thanks for your honesty. I figure between world lowpsycho 07/17/14 06:55:40 PM
#147   I'm betting (just a guess) more dumping in wiredawg 07/17/14 06:53:15 PM
#146   I am aware of the events just find lowpsycho 07/17/14 06:43:02 PM
#145   Are you not aware of world events. Today? wiredawg 07/17/14 06:31:04 PM
#144   lowpsycho 07/17/14 03:36:03 PM
#143   Did I miss something? This looks like the lowpsycho 07/17/14 03:36:02 PM
#142   Why the drop in price? Is TNK typically lowpsycho 07/17/14 11:02:03 AM
#141   Agreed....boring quarterly dividend stock, I guess. It's wiredawg 07/14/14 04:17:27 PM
#140   Why is this board so empty? TNK appears lowpsycho 07/14/14 03:51:03 PM
#139 dabonenose 06/22/14 10:06:54 PM
#138   "Tanks" for the reply... :) wiredawg 01/22/14 04:30:14 PM
#137   Fracking in the US has produced a surplus iheartweimers 01/22/14 02:15:17 PM
#136   Finally, a response from someone...LOL wiredawg 01/22/14 11:23:28 AM