Odfjell SE - Chemical Tanker Industry Update
Organic & inorcanic chemicals continued with strong demand in 1Q20 while
Vegoil shipments were initially negatively affected by Covid-19
Weak CPP market & high
influx of swing tonnage
22
25
20
Billion TM
15
15
10
10
5
LO
0
9
Organic chemical plant start-up's & strong vegoil exports counters
slower trade-war related economic growth/sentiment
Attack on Saudi
oil installations
IMO 2020 & reduced
swing tonnage
Covid-19
Annual growth, %
12
6
3
0
-3
-6
-15
2018Q2
2018Q3
Net fleet growth (%)
2018Q4
Tonne-mile demand growth (%)
2019Q1
2019Q2
2019Q3
2019Q4
2020Q1
Methanol
EG
SA
Vegoils
Other
O Tonne-mile demand has surpassed net fleet growth for chemical tankers since the second quarter of 2018
-5
-10
Swing tonnage driven by a weak CPP market has been a key dampening effect on the speed of the recovery of our markets through 2018 and first half of 2019
The stronger markets we experienced before Covid-19 plays a role in why the impact from the pandemic has not been as severe as initially feared as fleet utilisation was improving
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