Yard Trips Sink Ships

Public companies, private equity groups and new entrants to the shipping markets convened at various finance conferences this week bringing both enthusiasm and raising valid questions about the long-term prognosis for recovery in tanker freight rates. Recent comments made to the press and Wall Street have created some cause for concern as well-established tanker shipping companies seem to appear somewhat cavalier about the oversupply situation. While we appreciate the confidence in the resilience of the market, tanker shipping companies should be cautioned that the overall demand climate seems well satisfied by the developing fleet for the near term. Download here