Global Product Tanker Trade May Rise 3%-4% in 2013 -Executive

Volumes traded via product tankers will likely rise 3%-4% worldwide this year, due to robust demand for petrochemicals, said Erik Hanell, managing director of Copenhagen-based shipping company Stena Weco.
The company will take delivery of six MR tankers in 2014, as it expects demand for petrochemicals to rise, Mr. Hanell told Dow Jones Newswires late Monday.
Stena Weco is one of the leading transport companies for palm oil, with major market share of cargoes from Asia to Europe, and also ships petrochemicals using the same route. It operates 35-40 ships, 30% of which are company owned.
Mr. Hanell said that even though edible oils trade, which accounts for 10% of the company's trading volume, is expected to remain steady this year, the long-term outlook for palm oil remains positive due to increased demand from Asia, including India, China and Indonesia. As a result, the company may consider expanding its presence within Asia, focusing more on shipping edible oils within the region rather than to Europe, he said.
Most shipping companies are hesitant to invest right now and will only expand their fleets if they are assured employment, Mr. Hanell said, without elaborating.
Stena Bulk AB, which owns 50% of Stena Weco and posted revenue of about $180 million in the financial year ended Dec. 31, 2012, announced a new joint venture-Golden Stena Bulk-with Singapore-listed Golden Agri-Resources Ltd. (E5H.SG) Monday.
"Golden Stena Bulk can be seen as the second step in our collaboration with leading palm oil plantation company GAR. For us, it's also a gateway to Asia," said Mr. Hanell, who is also Stena Bulk's president and chief executive.
The 50-50 joint venture will take over four product tankers ordered by Stena Bulk in June 2012. The vessels will be deployed in Stena Weco's logistic system.
Source: Dow Jones