Tradewinds: Poten in Products Caution

“Cash-rich owners looking to jump on depressed newbuilding prices in the products tanker market may want to think twice before wading in with a new order, a leading shipbroker has warned. A new products tanker in South Korea today has a price tag 30% below the 2008 peak, Poten & Partners says. ‘To a cash-rich owner in a bad market, newbuildings have the added advantage of delayed delivery, which in theory will allow the market to recover by the time the ship begins to trade,’ its weekly report said. ‘But aye, there’s the rub. While attractive on a microeconomic level, a widespread resurgence in newbuilding activity could seriously exacerbate oversupply woes and jeopardize the recovery of tanker rates anytime in the near future.”’