Celebrating 2024: A Year of Innovation, Growth, and Market Insights from Stena Bulk
December 2024

As 2024 draws to a close, it’s a natural moment to reflect on what has been a transformative year for Stena Bulk. From embracing new innovations to navigating a dynamic tanker market, this year has underscored the importance of adaptability and resilience in our industry. Here’s a recap of the year’s highlights and a forward-looking view of the tanker market into 2025.

The tanker market in 2024 started strong, supported by robust global oil demand and shifting trade patterns. However, this was not the case year-round. Q4 has seen a significant drop in terms of market performance. Key factors contributing to this decline include the following:

  • Supply and demand of ships: The influx of newbuilds entering the market is beginning to weigh on rates, creating a less-than-favorable balance between vessel supply and demand.
  • New trade routes: Changes in oil trade flows, caused by geopolitical adjustments, have reshaped routes but failed to generate the bottlenecks that typically drive spikes in earnings.
  • Energy demand variability: A less optimistic energy demand outlook in parts of the world has added pressure to the market.
  • Lack of major global events: Unlike 2022 and 2023, there have been no significant disruptions or geopolitical events causing bottlenecks or creating unexpected spikes in tanker demand.
     

While 2024 overall has been a solid year for the tanker market, the performance in the latter part of the year reminds us of the cyclical nature of the shipping industry.

As we approach 2025, the tanker market is expected to encounter challenges, largely due to an increase in newbuilding deliveries. The global order book, particularly for product tankers (+20%) and crude tankers (+10%), suggests a rise in fleet capacity that will likely outpace scrapping, further pressuring rates.

At the same time, long-term fundamentals remain positive, driven by:

  • Evolving trade dynamics: While trade flows are shifting, emerging economies and new refining capacities are expected to generate demand in the medium term.
  • Increased fleet efficiency: The implementation of new operational standards and regulations is encouraging the replacement of older, less efficient vessels with more advanced, cost-effective alternatives.
  • Continued global oil demand: Despite variability in regional demand, global oil consumption is expected to remain resilient over the next year.
     

At Stena Bulk, we are preparing for these challenges by maintaining a focus on fleet optimization, long-term contracts, and ensuring that our operations remain as efficient as possible to navigate the softer market conditions ahead.

This year, we accelerated our exploration of artificial intelligence (AI) applications across business functions with the launch of an AI accelerator team. These efforts, combined with the continued development of our business system—now operating independently as OrbitMI—are reshaping how we approach efficiency and decision-making in shipping.

In 2023, we increased our commitment to modernizing tanker solutions, investing in more efficient Medium Range (MR) tankers scheduled for delivery in 2025. These vessels will position us to remain competitive and relevant in the evolving tanker market.

This year also marked the 19th anniversary of the Stena Sonangol Suezmax Pool, highlighting the strength of long-term partnerships in driving consistent performance. Additionally, the naming ceremony for the methanol-powered tanker Stena Prosperous in Singapore, in collaboration with Proman, underscored our ongoing drive for innovation.

As we reflect on 2024, we are grateful for the dedication of our team, the trust of our partners, and the opportunities to innovate and grow. While the market outlook for 2025 may seem challenging, we remain committed to navigating these headwinds with creativity, focus, and a long-term perspective.

Here’s to 2024—a year of progress and learning—and to 2025, as we continue to evolve and lead in shaping the future of shipping and a better, more efficient industry.
 

By Erik Hånell, President & CEO of Stena Bulk
December 2024