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Analysts: This is why tanker rates will rise again

Tightened requirements for tanker vessels will increase the incentive for carriers to scrap the growing fleet of aging tankers. This is good news for pressured tanker rates, notes Norwegian analysts.

Photo: Sovcomflot

Tank sliding tanker rates can now be helped along by reduced market capapcity. In the coming years, the number of tanker vessels older than 20 years will increase while the new global ballast water requirements are set to come into force. This will increase the carriers' incentive to scrap tankers, projects analyst Marthe Lamp Sandvik of Lorentzen and Stemoco, according to media Sysla.no.

After a long upturn ahead of 2016, the tanker rates have seen a prolonged decline, particularly in the second quarter this year.

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