Product tanker owners are likely to remain in a depressed mood through to 2020, London broker Gibson is warning in its latest weekly report, likely resulting in further sale and leasebacks to stay solvent.
“2018 has been a horrible year for product tanker owners, with sale and leasebacks being necessary for many to provide a financial bridge to better times,” Gibson noted, adding: “Many are pinning their hopes on 2020; which, as we have written in the past is expected to be supportive for product tankers.”
Providing some succor, however, Gibson did add that new refinery developments could offer a further boost to tonne mile demand, similar to what was seen from 2014 to 2016. The broker did warn that often such projects are subject to delays and operational setbacks during the commissioning phase, whilst not all new capacity additions are dedicated to export demand.
