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Return of NITC VLCCs could be 'catastrophic' for tanker marketReturn of NITC VLCCs could be 'catastrophic' for tanker market

A quick return of the NITC fleet if sanctions against Iran are lifted could have a “catastrophic” impact on the crude tanker market, warn brokers EA Gibson.

Marcus Hand, Editor

October 23, 2013

1 Min Read
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NITC has a fleet of 37 VLCCs, nine suezmaxes and five aframaxes, which have been effectively removed from the market by sanctions against Iran. With the election of new Iranian president Hassan Rouhani in June relations with the West have warmed raising the possibility of the lifting of sanctions in the not too distant future.

Its weekly report Gibson’s noted that one of the impacts of the sanctions had been to reduce Iranian oil output by around 0.8m barrels per day (bpd). How long it takes to get oil production back to pre-sanction levels would impact the proportion of NITC’s fleet that would enter the global tanker trading market.

“It is more than likely the speed of oil production increases will be slow, in which case the national carrier’s tonnage could re-enter the tanker market as relets – again swelling the fleet,” the report said. While some of the fleet would require repairs and drydocking this would only provide a temporary delay.

In a stark warning Gibsons said: “The possible influx NITC VLCCs could have a catastrophic impact on the tanker market”.

Not a prospect that tankers will happy about as VLCC rates finally make some headway passing the $20,000 per day mark.

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About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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