Lloyd’s List: Owners Reluctant to Snap up MR Product Tanker Bargains

“Freight rates may be climbing, re-sale opportunities remain scarce and current owners are holding onto their assets amid bullish speculation on market prospects for the medium-range product tankers, but newbuilding deals remain surprisingly hesitant. Conscious that adding to the recent flurry of orders could threaten the emerging and long awaited equilibrium in the market, shipowners have so far held back from taking advantage of attractively low prices, but the uncharacteristic restraint is unlikely to last brokers have warned. Current prices for product tanker newbuilding at a South Korean shipyard with delivery two years from now are around 30% cheaper than the market high levels of August 2008, according to recent Poten and Partners estimates, and around 13% cheaper than the average price over the last five years.”