"Red Sea Attacks Spark Oil Tanker Shortage and Economic Ripples"
Originally Published 1 year ago — by Yahoo Finance
Houthi attacks on commercial shipping in the Red Sea have led to widespread diversions in global petroleum trades, exacerbating the longstanding issue of too few oil tankers being built. With just two new supertankers set to join the fleet in 2024, rates have spiked and voyage durations have increased, impacting the tanker market. The situation is expected to tighten further in the future, as the tanker shortage coincides with a faltering global fleet efficiency and a reshuffling of global oil flows. Despite some reasons for caution, equity analysts are bullish about the future of tanker owners due to the limited order book, aging fleet, and impact of environmental regulations.
