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Maritime News

Tankers Newbuildings Up by 17 in 2017 up 340 ships changed hands in the S P Market

The tanker market is geared for a transition period in 2018, as tonnage oversupply and the oil price fluctuations are bound to keep adding pressure at freight rates. In a recent note, shipbroker Intermodal said that over the course of 2017, market fundamentals have been casting a shadow of uncertainty over 2018’s performance.

“In a rather unconventional development, despite the fact that earnings for the sector have continued to move lower this year, tanker newbuilding orders have actually increased year to date by 17%, compared to 2016. The most logical explanation for this has been the admittedly attractive newbuilding prices that still continue to tempt a number of owners into ordering despite a rather challenging freight market. When it comes to SnP activity, things have been rather steady; we are counting around 340 SnP tanker transactions so far, compared to the 333 transactions we have on record for the same period in 2016”, Intermodal noted.

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