New investors responsible for overcapacity in the tanker market

New investors in the shipping industry as well as too-high prices on second-hand ships are to a great extent responsible for the overcapacity in the market. This was the conclusion reached by a unanimous panel on Tuesday at the Sea Asia conference in Singapore. “New ships are cheaper than second-hand,” said Mikael Skov from Tankers Inc.

Photo: Hapag-Lloyd

SINGAPORE: Instead of buying ships from others, shipping companies are increasingly expanding their fleet by adding new ships straight from the yards. This development is primarily due to the fact that the prices have not followed the declining market, a unanimous panel stated during a discussion at Asia’s biggest shipping conference Sea Asia 2013 on Tuesday:

“New ships are cheaper than those on the second-hand market. This makes some companies order new ships instead,” said Mikael Skov, CEO and co-founder of Tankers Inc., which specializes in transportation of oil and oil products.

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