How Low Can You Go?

September marks the end of a particularly brutal summer. Assessed earnings on the Arabian Gulf to Far East benchmark trade averaged less than $5,700 per day from July through September. As we stand at the threshold of the historically lucrative fourth quarter, the market is holding its collective breath for an uptick in rates. Tonnage oversupply has confounded typical seasonal and systemic weakness and has the market resounding with bearish grumbles. Current rate levels have owners in limbo; earnings are such that companies are effectively paying charterers for the privilege of employment. After this fall in rates, many are asking “Can they get back up?” Download here