Orders for new product tankers in sharp slowdown

According to brokers Gibson, the massive growth in orders for new product tank vessels in recent years is now in steep decline, though carriers and operators should not rejoice yet.

The huge activity in recent years in newbuilding orders for, especially, MR and LR2 product tankers has stopped in 2014, with 14 and seven orders, respectively, placed this year. According to brokerage firm Gibson's updated numbers, this is good news for the MR and Handy segments in particular, where the total orderbook has grown from 10 percent in early 2013 to 18 percent today.

With a total 227 MR and Handysize ships added to the combined orderbook in 2013 - the third highest figure ever registered in one year - Gibson, according to Hellenic Shipping News, warns that the number of newbuildings hitting the water will accelerate once more in the time to come, meaning that the expected recovery of product tanker profits could be further delayed.

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