Tuesday, May 26, 2009
Tanker owners appear positive for the future
Monday, 25 May 2009
After a more than difficult first quarter of the year, tanker owners appear today more optimistic on the future of the market, with the sector still facing serious challenges steaming from a plunge in oil production and demand, together with a potential tonnage oversupply, although lower than the one foreseen for the dry bulk market. Torm’s CEO was more than optimistic last week, saying that the product tanker market has bottomed out and even improved slightly. Mr. Mikael Skov cited as an example the gas shipping from Europe to the United States, especially in the second quarter of te year. He also said that TORM hasn’t cancelled any ship orders during the first quarter.
On a similar tone, Athens-based tanker owner and operator Tsakos Energy Navigation Ltd (TEN) has highlighted a good balance between the spot and period markets along with fleet diversification as instrumental for industry players to ride out the downturn. "Prudent cash management, balanced employment and a modern diversified fleet are the three factors moving the company forward, providing shareholder value irrespective of market conditions," said TEN. Going forward the company expects to maintain its “customary blend of charters to maintain security of employment, downside protection and flexibility to capture rate upturns should they occur.”
And despite no clear signs yet of a recovery for shipping and the world economy overall, TEN said that it will continue its strategy of fleet growth and modernization. Going forward the company expects to maintain its “customary blend of charters to maintain security of employment, downside protection and flexibility to capture rate upturns should they occur.” And despite no clear signs yet of a recovery for shipping and the world economy overall, TEN said that it will continue its strategy of fleet growth and modernization. TEN's operational fleet already consists of 46 double hull tankers with four aframax newbuildings scheduled.
Analysts however appear more pessimistic. For instance, McQuilling said on Thursday that the bottom might not have been reached in global tanker markets and owners could soon be forced to lay-up their tankers. To justify this view, Mcquilling reported that there are about 50 supertankers in floating storage currently. If these ships reenter the market, together with the expected delivery of an additional 38 VLCCs and 33 suezmax newbuildings until the end of the year, the markets may deteriorate further said the US-based company. “In order to prevent possible future losses, and sometimes in hope to impact the markets, tanker owners engage in various fleet rationalization strategies. One of them is a possible vessel lay-up,” said McQuilling.
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