Do You Want Coatings With That?

August 8th, 2024: Owners choose to pay a premium for optionality A comparison of the newbuilding orderbook for Aframax and LR2 tankers shows a strong preference for the coated or clean version of this versatile tanker segment. There are only 40 crude Aframaxes on order, representing a very modest 4.7% of the existing fleet of 854 tankers. The LR2 orderbook, on the other hand consists of 158 vessels, a massive 53.6% of the existing fleet (295 vessels). What is the reason for this dramatic shift from dirty to clean tankers? We will try to address some of main drivers in today’s Tanker Opinion. Let’s start with some background information. Aframax crude oil tankers have been around for a long time. Aframaxes are typically defined as tankers with a deadweight tonnage capacity ranging from 80,000 – 120,000 which can carry around 600,000 barrels of oil (exact capacity depends on the particular dimensions of the ship and the API gravity of the crude oil). The term “Aframax” originates from the Average Freight Rate Assessment (AFRA) system, developed by Shell in 1954 to standardize shipping rates and contracts. Aframaxes are designed to navigate smaller ports that cannot accommodate larger tankers like Suezmaxes and VLCCs. Aframaxes are very popular in regions such as the Black Sea, Baltic, North Sea and Caribbean. Please fill in below form to continue read.