Team Tankers, the Oslo-listed chemical carrier group previously known as Eitzen Chemical, expects the sector to enjoy gradual improvement in the balance between the supply of tonnage and the demand for it.
“Subject to moderate global GDP growth, the company expects the supply/demand balance for chemical tankers to improve gradually going forward,” Team Tankers said in its 2014 annual report. It did not release new financial information.
The company said the orderbook for chemical carriers up to 54,000 dwt is about 17% of the existing fleet. In 2015, the total delivery of newbuildings is expected to be 2.6 million dwt, with expected scrapping of 1 million dwt. For example, the company expects a net positive fleet growth of 1.6 million dwt or 4.4%. This compares with the net fleet decrease of 0.3 million dwt or 0.9% in 2014. The net annual fleet growth the coming years is expected to be moderate.
“As per industry sources, the demand for seaborne chemical transportation in 2014 was below both the historical long-term growth trend and estimated future growth of about 5% per annum. The weaker demand growth was significantly impacted by a decrease in imports of chemicals and related products to China, in particular,” Team Tankers said.
“Although the short-term development in demand of seaborne chemical transportation is uncertain, the market is expected to improve following significant investments in the chemical production capacity in the Middle East and the US, and the market should experience gradual improvement with increased fleet utilisation the coming years,” the company concluded.
Team Tankers is domiciled in Bermuda, listed in Oslo, and managed from Oslo, Copenhagen, and Singapore. The company recently underwent a restructuring programme, which the board presented to lenders and bondholders on 23 December 2014. It was based on converting USD850 million worth of debt in the company to equity and repaying about USD46 million of its borrowing in cash. The conversion gave the company’s lenders and bondholders 98% of the shares in the company.
Earlier this year, the company changed its name to Team Tankers and relocated its legal domicile from Norway to Bermuda. The company operates a fleet of 48 ships that range in size from 3,500 to 48,000 dwt.