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oiltanking

oiltanking
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  • A lack of demand for container shipping often serves as a bellwether for international trade, so bleak forecasts (I, II, III) from Maersk (AMKAF.PK), Frontline (FRO -13.8%) and Teekay Tankers (TNK -2.8%) do not bode well for a global economic recovery this year. For the shippers, demand rising at about half the rate that new vessels are adding to capacity means a rough year ahead. [View news story]
    There are more tankers and ships than ever so any global economic rebound, unless significant, is not going to have much effect. For that reason I do not necessarily agree with shipping being the indicator as to global economic health. The ship owners cannot resist the bargain basement prices of new builds, so they keep adding more vessels instead of pairing it with the scrapping of older ones in order to maintain an equilibrium. I think we will see a few shippers go out of business this year as it becomes a bit of a race of the last man standing, who in the end will reap the rewards.
    Feb 24 09:16 AM | Likes Like |Link to Comment
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