Cleaves Securities is holding an optimistic view on the outlook for crude tankers as owners have managed to hold back from ordering ships.
Cleaves Securities’ latest weekly report shows newbuilding contracting in February fell to the third lowest level in almost 10 years with LNG carriers accounting for around 30% of all newbuilding contracts in the period.
“Given the improved sentiment in oil tankers: with asset prices, timecharter and spot rates significantly higher year-on-year, it is surprising and highly positive that newbuilding contracting has yet to pick up,” Cleaves Securities said in the report.
“Each month with the orderbook at 12% (close to all time lows) is likely to prolong the cycle, which we believe is just in its first innings,” the report added.
On the tanker chartering front Cleaves noted that one year time charters are rising, reflecting what analysts at the company stated was a positive view for the second half of this year.