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Wednesday, Bloomberg TV's "Taking Stock" program had Ms. Natasha Boyden, a maritime analyst with Cantor Fitzgerald, as a guest.

Speaking about the use of tankers as "floating storage", she said that there are currently 120 tankers being used in that fashion. As that oil inventory is off-loaded, that means there's a HELLUVA lot of tonnage that would be available for charter, which certainly wouldn't bode well for rates.

According to Ms. Boyden, all is not gloom and doom, however, as in all likelihood, somewhere around 71/72 VLCC/ULCCs will be scrapped, over the next year, due to the environmental regs mandating the elimination of single hull tankers.

The company that she likes is Overseas Shipholding Group (OSG). According to her analysis, they've got a pretty bulletproof balance sheet that would help shield them from any temporary "squalls" in the tanker charter market. Additionally, they tend to favor longer term charters, over the spot market.

While I'm certainly aware of the company, it's not, nor has been, on any of my watch lists, so I have no deep thoughts regarding her recommendation.

Disclosure: No positions in stocks mentioned above.

Source: Maritime Analyst: All Is Not Doom and Gloom for Tankers