The implications of covid-19 on the shipping/oil tanker market.

Abstract

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.