Tankers
27/7/2012

MR tanker market "oversupplied & with slacking demand"


Surging investment in the MR tanker segment seems to bring disappointment.

Although the MR orderbook stands at just over 10% of the fleet and the demand is likely to grow by refinery development in the Middle East, the real potential of the market may have been overblown, Intermodal explains.

George Lazaridis says bigger vessels are to benefit most, explaining "At the same time as the voyage distance starts to increase, these larger sizes become better suited to take advantage of these routes due to the extra benefits offered by the economies of scale.”

“Large product tankers such as LR1s and LR2s are most likely to benefit, leaving the MR tanker range oversupplied and with slacking demand”, Lazaridis added.

Tankers

Charter rates for the largest oil tankers hauling Middle East crude to Asia rose the most in two weeks amid speculation demand to book vessels strengthened.
High contracting activity in the dry bulk segment continues also this week, with totally 18 ship orders. This includes the order from Eitzen Eco Bulk for up 9 handysize bulk carriers at the private owned Yangzhou shipyard in China. Also Oldendorff is taking advantage of low shipbuilding prices to build up its fleet, latest with declared options for further 2 handysize bulk carriers at Samjin.
Paragon Shipping has placed an order for two 4,800 TEU containerships with Zhejiang Ouhua, China to be delivered in 2014, according to the latest Intermodal Market Report. The price was not disclosed.
A surplus of the largest oil tankers expanded for a second week in the Persian Gulf, the world’s biggest crude-loading region, a Bloomberg News survey showed. There are 19 percent more very large crude carriers available for hire over the next 30 days than probable cargoes, according to the median in a Bloomberg survey of six shipbrokers.




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