The upswing in product tank is supported by a new study from analysts Fearnley. The analysts conclude that the total orderbook for product tank now stands at 11 percent, which means that all the major yards are fully booked for product tank ahead of 2015, and till 2016 for Japanese yards, writes Fearnley, which estimates that demand will exceed the supply of capacity from 2013 and onwards:
"This will improve the market balance, however, with a current oversupply of ships we believe the rate development will improve gradually. We believe asset prices have bottomed and are positive to selected names in the sector," writes Fearnley, pointing to companies such as Frontline 2012, Scorpio Tankers, and d'Amico Int. Shipping as companies that are well positioned for an eventual upswing in the sector.