MOL: Low Crude Prices Have Provided "Twin Benefits" of Lower Bunker Costs, Increased Tanker Demand

by Ship & Bunker News Team
Thursday January 7, 2016

Junichiro Ikeda, CEO of Japan's Mitsui O.S.K. Lines, Ltd (MOL), in a New Year address said that low crude prices in 2015 provided "a tailwind with the twin benefits of reducing bunker costs and spurring the tanker market," but warns that positive conditions in the tanker market cannot persist indefinitely.

"We cannot realistically expect favorable conditions will go on forever in the tanker market," said Ikeda.

The CEO also noted that that low crude prices and a slowdown in resource development could threaten the company's Liquefied Natural Gas (LNG) carrier and offshore business projects.

Further, with the containership and dry bulk segments "stuck at historically low levels," Ikeda says that the business climate "remains severe" with "few prospects for recovery" as fleet oversupply persists and the Chinese economy continues to slow down.

"Our containership and dry bulkship operations continue to be battered by difficult market conditions," said Ikeda, adding that "shipping companies all over the world are fighting for their very survival."

Ikeda, commenting on how MOL intends to remain strong amid the current challenging shipping market, said "we must not be content to rely on methods that worked in the past."

In July, it was announced that MOL had made an order for methanol-powered carriers as part of its overall environmental strategy.

Ship & Bunker News Team
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