On June 28th, Wuhu Shipyard signed a contract with the renowned Turkish shipowner, Transka Tankers, for the construction of four 40,800-ton MR1 oil/chemical tankers.
These vessels are scheduled for delivery in 2027, with two of them being built at Wuhu Shipyard's Weihai base.Designed by CSSC-SDARI and classified by the Bureau Veritas, these ships boast a length of 180 meters, a width of 32 meters, and a depth of 16.5 meters. They comply with the EEDI III standards, featuring larger cargo capacity, lower fuel consumption, and eco-friendly characteristics compared to older models.Transka Tankers, part of the Akbasoglu Group, is a long-established Turkish shipping family with interests in #energy, tourism, and shipbuilding.
They currently own over a dozen various tankers, focusing on the Handysize/ MR1 product tanker segment.
This new order marks their return to Chinese shipyards after 20 years, aiming to replace their aging fleet.
Globally, there are approximately 300 MR1 product tankers with deadweights between 35,000 and 40,000 tons. Nearly two-thirds were built by Hyundai Mipo Dockyard between 2005 and 2010. With an average fleet age of 16 years and upcoming environmental regulations like EEXI, CII, and EU ETS, there's potential for a supply-demand gap in this segment.
MR1 tankers are primarily operated in the Black Sea, Mediterranean, Europe, and West Africa. Due to draft restrictions in some European ports, such as those in Italy, Turkey, and Greece, MR1 tankers are more flexible and capable of accessing more ports than traditional MR2 tankers, making them ideal for short to medium-distance product and chemical transport.
further more，according to E.A. Gibson Shipbrokers Ltd ，Medium Range (MR) tankers, essential for both clean and occasionally dirty product markets, form the largest segment of the tanker industry. A significant portion of the fleet, nearly 30%, is between 15 to 19 years old, raising concerns about the aging fleet's trading capabilities. The increase in ordering activity is notable, with 114 units ordered last year and 71 more this year, bringing the MR orderbook to nearly 230 vessels, or 13% of the existing fleet.
Despite scheduled deliveries in 2025 and 2026, the aging fleet remains a concern, with another 13% of the fleet over 20 years old, often finding alternative employment due to geopolitical changes. Approximately 181 out of 1,720 MR tankers are trading exclusively in Iran, Venezuela, and Russia, significantly impacting the mainstream market by supporting rates.
The combination of growing demand and tightening supply has kept the MR market strong, with global spot TCE earnings averaging $35,000/day for non-Eco vessels year-to-date. Sanctions on Russia have structurally changed clean tanker flows, while conflicts in the Red Sea create uncertainty.
Potential disruptions from new refineries in West Africa and Mexico contrast with the closure of European refineries, influencing regional CPP imports. The fleet's aging trend suggests a shrinking number of vessels under 20 years unless the orderbook grows.
by Xinde Marine News Chen Yang
Potential disruptions from new refineries in West Africa and Mexico contrast with the closure of European refineries, influencing regional CPP imports. The fleet's aging trend suggests a shrinking number of vessels under 20 years unless the orderbook grows.
by Xinde Marine News Chen Yang
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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