Dollars and Sense

The slight rally in the crude tanker freight rates has left many wondering if the crude tanker market is actually resilient enough to emerge from the financial crisis relatively unscathed. Over the past two weeks the market has gained momentum, with the VLCCs out of the Arabian Gulf bound for the Far East breaching $40,000 per day, spurring increased bullishness on the part of shipowners and oil companies. Only last month nearly all sectors of the market were bottom feeding, earning charter rates sufficiently below break‐even levels.