The tanker spot market was described as brutal and something that is leading directly to greater pooling of tonnage as a defensive measure during a session at Marine Money’s event in Singapore today.
Hew Crooks, CFO at Ridgebury Tankers, described the current spot rates as a “brutal market”. He described how charterers have been pouncing on rates offered by disadvantaged ships to get better rates. For instance, taking bids on ships up to 20-years-old and using the lower rates supplied to secure better vessels.
Kathleen Haines, CFO and treasurer at Heidmar, said there was no time charter market at the moment. “People are moving to pools as they aren’t willing to take low time charter rates,” she noted.
The chemical segment, however, appeared more resilient, with Kenny Rogers, head of Aurora Tankers, claiming the sector could support more vessels and more newbuildings.
All participants concurred that finding financing had become much harder.
Marine Money’s Singapore event concludes today.