Summer Doldrums

Recent weeks have seen earnings on benchmark tanker voyages threaten to break below operating costs amid an oversupply of vessels. The specter of vessel deliveries to come and indications of a slower economic recovery have led some to conclude from this vantage point that tanker markets will struggle for the remainder of 2010. This year’s summer struggles certainly reflect the structural challenges facing the market, but it is important to keep in mind the seasonal influences which tend to drag the tanker market down during this time of year. Download here