Annual report 2019
2019 in brief
Strong end to a weak year
Just as expected, the tanker market took a sharp upturn at the end of the year. This development was evident in all market segments and was largely structurally driven. The main drivers included underlying stable demand for oil, extensive US exports and ever-decreasing net tanker fleet growth.
Higher earnings due to stronger market
As a result of the stronger market, Concordia Maritime’s earnings in both the MR and Suezmax segment showed an increase, albeit from low levels. In the MR segment, earnings increased by an average of about 20 percent from 2018. In the Suezmax segment, the increase was about 50 percent.
Continued work to reduce bunker consumption
During the year, Concordia Maritime continued the long-term process of reducing the vessels’ bunker oil consumption. For the full year 2019, consumption decreased by 0.24 mt per day compared with the previous year.
IMO 2020 introduced
On 1 January 2020, the IMO’s new regulations on maximum permissible sulphur content in ship fuel came into force. The intention of the new regulations, which represent the single largest change for marine fuel ever implemented, is to reduce the emission levels of sulphur in the air. Concordia Maritime began the transition to low-sulphur fuel in the latter part of 2019.
Word from CEO
After a sharp upturn towards the end of 2019, the start of 2020 has been turbulent to say the least. The spread of the Coronavirus has presented the entire global community with enormous challenges. The tanker market is obviously also affected.
Kim Ullman, CEO Concordia Maritime
External trends & market
Market development and fleet earnings 2019
The tanker market remained weak during much of 2019. The main reasons were OPEC’s oil production cuts, continued stock withdrawals close to the consuming countries, adaptation of refineries to IMO 2020 and relatively extensive ship deliveries.Read more
Safety, care for the environmental and employer responsibility
For Concordia Maritime, issues relating to care for the environment, safety, transport efficiency and employer responsibility are closely aligned with sound and stable financial development.Read more
Goals and strategy
Focus on niche trades and flexibility
We will use our unique understanding of market drivers and the individual customer's business to satisfy specific transportation and logistics needs. Collaboration with customers is based on long-term relationships, characterised by partnership and high ambitions – whether this applies to a voyage or the development of a brand new vessel concept.Read more
At the end of March 2020, Concordia Maritime’s fleet consisted of ten P-MAX class product tankers, two IMOIIMAX class chemical and product tankers and one Suezmax tanker. Most of the vessels were employed in the spot market.Read more