Lloyd’s List: New Ships to Depress Time Charter Rates to Eight-Year Low

“One-year and three-year time charter rates for dirty tankers will fall to eight-year lows in 2011, as high numbers of new ships trading negate the affects of improved oil demand, said New York-based tanker broker and consultancy Poten & Partners. Three of the four major tanker classes shipping crude or fuel oil — suezmax, aframax and panamax tankers — would see a “modest recovery” in average freight rates in 2011, above 2010 levels, according to the brokerage’s five-year outlook. But along with very large crude carriers, which would see this year’s average spot rates lower than 2010, all sizes would achieve rates at levels below long-term averages over the next five years. Under Poten policy, actual freight rate forecasts contained in the report cannot be published.”