Singled Out

The eventual fate of the single-hull tanker fleet is clear: these vessels must exit the market by 2015 or when they reach 25 years of age. However, with that date still several years off, the intermediate outlook for this fleet remains fairly uncertain. The recent spill off the coast of South Korea has prompted concerns that the phase-out schedule will rapidly accelerate. Although many companies have sworn off the use of non-double hull tonnage, single hull vessels are still finding a home. The chart below shows the historical reported spot fixtures for non-double hull VLCCs worldwide. The number of non- double hull fixtures has remained relatively steady for the past couple of years and represent 38% of total reported spot fixture volume in 2007.