The implications of covid-19 on the shipping/oil tanker market.
DOI:
https://doi.org/10.47672/ajscm.741Keywords:
Covid-19, Shipping, Oil tanker, Implications, MarketAbstract
Purpose: This aims at analyzing the implications of covid-19 on the shipping/oil tanker market.
Methodology: In order to attain the aim of this study, findings and data are curated from existing literatures, documents, policies, etc. This implies that desk review is the methodology applied in this study where the researcher made use of secondary sources of data as against primary source of data.
Findings: In the study, it was found that covid-19 brought about a shortage in the rate of demands for good thereby causing an unbalance in the rate of supply over demand at a time which directly brought about a huge decline in shipping/oil tanker transportation. The study also found that irrespective of the huge decline in the rate of shipping/oil tanker transportation brought about by low demand in comparison with supply; shipping/oil tanker was patronized by dealers for the purpose of storage of products. Also, the study found that seaborne trade fell downward from above 3% to below a negative 8% and at a bdp rate of 100m, the demand was 3% higher than the global supply which in 2019 was at about 97%. However, in the second quarter of 2020 the supply leads demand at over 28M bdp and a 13% increase in the demand year-on-year when compared to a fall of 3.9% in the supply year-on-year.
Recommendation: The study recommends that appropriate forecasting methods and proper liaison with global health will aid in averting or ameliorating the risks and negative impacts brought on shipping/oil tanker market by covid-19.
Downloads
References
Adele, B. ‘The Impact of covid-19 on global shipping: Part 1, system shock’; Ship Technology; 2020
Adnan, M. & Siddiquea S.R; COVID-19 infection: Origin, transmission, and characteristics; Journal of Advanced Research, 24 (2), 91-98, (2020) doi.org/10.1016/j.jare.2020.03.005
BIMCO, ‘Coronavirus is disrupting the supply of ships as well as demand’; 2020; Available on https://www.bimco.org/news/market_analysis/2020/20200403_coronavirus_is_disrupting_the_supply_of_ships_as_well_as_demand
British Ports Association, UK Ports: Coronavirus Economic Recovery Plan 2020 and Beyond. London; 2020
Coutroubis, A. D. Menelaou, A. A. and Adami, E. ‘Impact of coronavirus disease (covid-19) on seafarers’ life and well-being’, International Journal of TROPICAL DISEASE & Health 41(21): 16-27, 2020;
Dzau, V, Fuster, V, & Frazer, J., Investing in global health for our future. N Engl J Med Overseas Ed; 377:1292–6. (2017); doi:10.1056/NEJMsr1707974
IHS Markit, ‘Spotlight on the impacts of covid-19 on the bulk carrier freight market’; Agricultural Business Research and Analysis, 2020.
Jallal, C. ‘Quantifying the impact of covid-19 on tanker trades’; Riviera, 2020
Philip, D. and Simon, H. Covid-19 container shipping market and operational issues update. Drewry Special Webinar. 14 May, 2020
Takahiro, ‘Why the tanker market was boosted by covid-19’; Mol-Services, 2020; Jallal, C. ‘Quantifying the impact of covid-19 on tanker trades’; Riviera, 2020
United Nations Conference on Trade and Development, ‘COVID-19 and maritime transport: Impact and responses’; UNCTAD, 2020.
Vessels Value, ‘Coronavirus causes China crude tanker demand to plummet’, 2020; Available on https://www.oilandgasmiddleeast.com/products-services/36282-coronavirus-causes-china-crude-tanker-demand-to-plummet-vesselsvalue
World Health Organization, Laboratory testing for coronavirus disease 2019 (COVID-19) in suspected human cases: interim guidance, (2020)
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Paul Ogoun (PhD)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
