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.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

SDK Freja anticipates steep earnings drop following record year

Logistics company SDK Freja, which delivered record financials with great advancement on top and bottom lines, takes a more gloomy view of the current fiscal year due to several ”external factors.” However, the growth target remains the same, CEO tells ShippingWatch.

LNG carriers concerned about increasing ship prices

The price on new LNG vessels has soared vigorously, and for Flex LNG this has meant a withdrawal from the market for new ships. Such was the statement by Flex LNG’s chief exec at Marine Money in New York, where he also announced new long-term charter agreements.

Maersk ships delayed up to three weeks on US east coast

Bottlenecks at major container ports on the US east coast have entailed that Maersk vessels are affected by delays of up to three weeks. It’s a combination of congestion, many ships, and a lack of container space, Maersk says.

Further reading

Related articles

Latest news

See all jobs