ABSTRACT
The entire world oil transport system has become disorganized, largely because the producer nations have little incentive to adjust the operations of their export terminals and lifting sizes to cater to the needs of oil shippers. Tanker owners clearly have responded to the structural changes in the market by placing orders for smaller ships. Despite structural changes in the market, there is a place for the very large crude carrier (VLCC), especially in the fleets of governments that can also fix lifting sizes. The low costs of carrying oil on VLCCs also increased the use of transshipment, both at sea and in transshipment terminals. More tanker tonnage was on order in 1973 than at any other point in history, and the majority of tonnage on order was of the VLCC category. Due credit for the rise of large tankers must also be given to the Japanese and certain independent tanker owners.
