The orderbook for depressed large tankers looks extremely worrying. Brokers Gibson report that there are 130 VLCCs and suezmaxes set to deliver between now and December 2019.
A lot of these newbuilds coming out at the moment are carrying clean cargoes on their maiden voyages, a trend Gibson expects will continue.
“Provided the crude sector remains under pressure, these tankers will continue to be used where the economics make sense, capping the product tanker markets potential,” Gibson stated in its latest weekly report.
Rates for VLCCs and suezmaxes have been dire this year and show little sign of improving.
On VLCCs over the past week, Gibson noted: “Charterers maintained an easy pace through the week, thereby continuing to massage the market lower with rates to the East dipping to below ws 50 for even modern units, and rare runs to the West at close to the ws 20 mark once again.” The broker warned that there could be a little further to fall. Meanwhile, for suezmaxes the market remained flat over the past week.