Tanker Market Heats Up as Owners Expand Fleets

The tanker shipping market is showing signs of strength, with two recent news items pointing to growing activity and fleet expansion among vessel owners. Klaveness Combination Carriers (KCC), a Norwegian owner of combination carriers, has secured a two-year fixture for one of its Cleanbu vessels, taking advantage of firm conditions in the product tanker market, according to a report from Splash247. The 2021-built 'Bass' has been fixed to a 'leading global energy company' in a deal that will provide KCC with stable cash flow over the charter period. 'This fixture demonstrates the continued strong fundamentals in the product tanker market,' said KCC's CEO Engebret Dahm. 'We are pleased to have secured attractive terms for one of our Cleanbu vessels, further strengthening our position in this market segment.' Meanwhile, Danish tanker owner Rederiet MH Simonsen has ordered two new polar-class tankers at Turkey's Ada Shipyard as it looks to renew its fleet, according to a report from Splash247. The 3,500 dwt vessels will feature diesel-electric propulsion and be designed to operate in Arctic conditions. 'The newbuilds are being designed to operate in polar conditions, which will allow us to expand our geographical reach and service a wider range of customers,' said Simonsen's CEO Morten Simonsen. The investments by KCC and Simonsen reflect growing confidence in the tanker shipping market, which has seen freight rates rise in recent months amid tight supply and strong demand for refined oil products. As the global economy continues to recover from the COVID-19 pandemic, tanker owners are positioning themselves to capitalize on expected increases in seaborne trade.