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Braemar: The VLCC spot market is broken

In a struggling VLCC market, owners are unable to sustain their economies in the spot market, which is completely broken, says Research Director at Braemar Seascope.

Black clouds continue to weigh down the prospects of the struggling tanker sector. The spot market has been completely ruined as a result of persistent overcapacity and declining US demand, says Mark Williams, Research Director at Braemar Seascope, at the Seatrade Tanker Industry Conference in Copenhagen.

"The spot market is completely broken. Since the early 1980s, when oil companies left the sector and independent operators took over the job of transporting crude and refined oil, shipowners have been exposed to the risk related to the freight, and in the last four years especially the carriers have not been paid enough for taking that risk," says Mark Williams.

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