Bright Future for Tankers

higher 2017 tanker scrapping will result in positive 2018 in the global market.

News ID: 71020

Date: 30 December 2016 - 16:32

LOW earnings and the ratification of ballast water treatment regulations support expectations that tanker scthe tanker market, like the oil market, is in “a clearing phase”, removing oversupply and rebalancing, MANA correspondent reported.
That process could take another year or so before returning to a position where sustained gains can be made, he forecasts.
Thus MSI is positive on the long-term outlook for tankers.rapping will move sharply higher in 2017, according to shipping consultancy MSI.
This will help construct a market recovery in 2018 and beyond, built on much lower fleet growth rates than being seen currently, both in the large crude and product tanker sectors,In addition, the actions of the Organisation of the Petroleum Exporting Countries might not prove to be the bombshell some fear.
Opec’s decision to cut output remains fraught with uncertainty on how the group will manage to maintain discipline and encourage non-Opec participants to join in, according to MSI. Moreover, the cut is not especially big, argued Mr Smith.

In other tanker dynamics, secondhand prices will struggle with the combined weight of both falling newbuilding prices and the continued deterioration in vessel earnings during 2017.