New Delhi: Coronavirus and lockdown has greatly reduced fuel consumption across the world. At the same time, the need for oil storage has brought tanker freight to a new height. Industry data shows this. There are plenty of storage facilities along the beaches. There is a high quantity of oil in the supply chains. Oil producing countries, businesses and refineries are filling more and more oil in the ships floating in the hope that the situation of heavy demand will be dealt with in future.

It is noteworthy that global demand for oil decreased by 30 percent in this quarter, as the lockdowns imposed due to corona worldwide brought the ground economy to a standstill. If this situation continues, by May 2020, US capacities in Oklahoma and Southern California will be fully filled. This situation has forced producers and traders, at least for now, to rent oil tankers for floating storage units.

This has led to a tremendous increase in the daily hire of very large carriers or VLCCs carrying crude oil. Now, the average fare of one day is being charged at US $ 240,000. Two months ago this freight used to be just US $ 25,000. This development has increased oil-tanker stocks in a big way. According to market analysts, there is a time for logistics companies related to oil tankers to earn huge profits.

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