Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 72

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 4
Chunk 72
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 pool of yards that shipowners are willing to consider is small.

World Coated IMO 2 and Stainless Steel Tanker Fleet and Orderbook: December 31, 2024

                        Fleet                 Orderbook                              Orderbook Delivery Schedule (M Dwt)            
  Ship Type            Number      M Dwt         Number      M Dwt      % Fleet                                     2025      2026  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Coated IMO 2           1075       24.9            136        3.2        13.0%                                      0.4       0.7  
  Stainless Steel         862       19.1            183        4.7        24.6%                                      0.8       0.7  
  Total                  1937       44.0            319        7.9        18.1%                                      1.2       1.4  

Source: Drewry

The Chemical Tanker Freight Market

Nearly 40% to 60% of all chemical movements are covered by Contract of Affreightment (“ COAs”), while the spot market covers 35% to 40% of chemical movements. The remainder is made up of other charter arrangements and cargoes moved in the vessels controlled by exporters or importers. However, the COA-spot ratio varies depending on the vessel sizes, shipowners’/operators’ chartering strategy, and other factors. In the chemical tanker freight market, the level of reporting of fixture information is far less widespread than for the oil tanker market. Furthermore, it is not always possible to establish a monthly series of rates for an individual cargo, on a given route, because fixing is often sporadic, or more often than not covered by contract business. For these reasons, the assessment of spot freight rate trends in the freight market is made by using a small number of routes where there is sufficient fixture volume to produce meaningful measurements.

In 2024, TCE rates reached their highest level in May but moderated thereafter due to weak overall demand and less support from the subdued CPP market. Overall, the TCE rates increased 5.1% YoY. This followed strong years in 2022 and 2023, with TCE earnings in the chemical tanker market showing robust growth, driven by rising tonne-mile demand and limited vessel supply. Swing tankers moved away from chemical and vegetable oil