Tanker market yet to bottom out

Tanker market yet to bottom out

The tanker market has yet to bottom out, according to a slim majority of Splash readers.

With our latest quarterly online survey, MarPoll, due to close tomorrow 55% of the 400-plus voters so far believe the tanker market has not hit rock bottom yet. 2018 has been one of the worst years for the tanker sector. However, this has spawned a record number of tankers heading for scrap. Nevertheless, there is still a large orderbook to filter through in the coming 18 months, which is adding pressure.

In announcing its interim results earlier this week Belgian tanker giant Euronav indicated rates are likely to remain flat for some time to come, noting: “An elevated recycling price, continued negative cash flow pressure on older tonnage from challenged freight rates, low utilization and growing pressure from incoming regulatory changes should provide support for further recycling in the second half and beyond. Further fleet rebalancing is however required before the freight market can make sustained progress as the newbuild delivery schedule remains concentrated particularly in the VLCC sector well into 2019.”

Other topics covered in the latest MarPoll include the sulphur cap, blockchain and newbuild prices. Results will be revealed in the next issue of Maritime CEO magazine due out later this month. Voting takes just two minutes and there is no registration. To vote, click here.

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