Odfjell SE - Chemical Tanker Industry Update
Our markets was tightening ahead of Covid-19 with demand surpassing fleet
growth for two years despite various negative factors impacting our markets
Weak CPP market & high
influx of swing tonnage
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
9
6
3
0
-3
-6
2018Q2
2018Q3
2018Q4
2019Q1
2019Q2
2019Q3
2019Q4
2020Q1
Net fleet growth (%)
Tonne-mile demand growth (%)
O Tonne-mile demand has surpassed net fleet growth for chemical tankers since the second quarter of 2018
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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