Bloomberg: Tanker Returns Reach Record Low as Demand for Vessels Weakens

“Returns for the largest oil tankers hauling Middle East crude to Asia, the industry’s busiest trade route, reached a record low as demand for the ships slowed. Very large crude carriers on the Saudi Arabia-to-Japan voyage are losing $7,850 daily, figures from the Baltic Exchange in London showed today. That’s the worst return on record for figures going back to July 2008. . . . ‘There’s no demand salvation for tankers,’ said Jeff McGee, head of marine research and consulting at New York-based shipbroker Poten & Partners Inc.  He pointed to declining demand for crude from Chinese refineries and a fleet expanding as much as 8 percent on a year-on-year basis.”