Pakistan and Gulf Economist: US Tanker Fleet Could suffer from Tonnage Oversupply

“The troubles of tonnage oversupply as a result of hefty ordering of newbuildings, which have plagued the tanker market for the past couple of years, could very well be spreading among the US-based Jones Act fleet, according to the latest weekly report from analyst Poten and Partners. The report noted that ‘in today’s market Jones Act tankers command a significant premium as few ships are available in the face of overwhelming demand and tight supply. 34 MR’s and 42 coastal barges of 130,000bbls or larger represent the current US Jones Act Fleet. “However, future supply may not be as tight as many orders have been hitting US shipyards. There are at least 10 medium range tankers on order, two large ATBs, and the possibility of an additional five to eight tankers to be built at Avondale. These orders will represent a sizable addition to the US flag tanker fleet over the next three to four years, which will help increase the liquidity in both the spot and relet markets’, Poten said in its report.”