The tanker shipping arm of China Cosco Shipping Corporation (Cosco Shipping) noted that in 2017 the delivery of tanker transportation capacity “reached a cycle peak”, leading to an oversupply situation.
“However, the forthcoming implementation of the Ballast Water Treatment Convention during the year may lead to the temporary withdrawal of some of the transportation capacity from the market,” CSET said.
“To a further extent, this may lead to the result that the US shale oil and gas revolution will promote the formation of the new pattern of oil and gas resources from the East and the West.
“The adjustment of the global oil and gas trade and transport pattern has provided an opportunity for us to optimise the market structure, the cargo source structure, the route structure and the customer mix,” the company said.
This year, CSET plans to add 13 new oil tankers with a total tonnage of 2.36m dwt and three new LNG vessels with a total tonnage of 520,000 cu m.
As at 31 December 2016, CSET operated a fleet of 100 oil tankers, four LOG vessels and one LNG vessel.
For the financial year 2016, CSET posted a profit of RMB1.97bn ($286.43m), an increase of 56.3% from the gain of RMB1.26bn in 2015. Full year revenue fell by 9.8% year-on-year to RMB9.66bn.