Tradewinds: VLCC Needs Leave Room for All

“China’s thirst for oil is set to surge in coming years and the question industry players are asking is: ‘Who will benefit?’ . . . . Poten & Partners says the future will see a two-pronged effort by China to further boost the size of its domestic tanker fleet and to reach out to overseas oil players. The economic crisis has already witnessed Chinese companies creating opportunities through ‘mergers, acquisitions and loan-for-oil agreements’, the analyst says. It continued: ‘Recent efforts to expand shipowning may ultimately lead to structural changes in the tanker market. ‘A stimulus package supporting shipping interests following the economic crisis has focussed on enlarging the Chinese-controlled fleet. ‘With Chinese charterers and shipowners currently controlling less than 10% of the VLCC fleet, the government has pursued its goal through a variety of means. ‘China’s shipping companies are also looking beyond the Great Wall to international companies as charterers of their vessels. ‘The economic crisis helped China secure access to much of the natural resources it will need to support its economy and many of the ships it will need to transport them. ‘With future barrels secured and the Chinese-controlled fleet expanding rapidly, Chinese companies are likely to focus next on developing long-term relationships with the international shipping and oil community.'”