World News
New Money Means Tanker Market has Too Many Ships and Shipowners
Kim Ullman, CEO of Concordia Maritime, says despite a recovering product tanker market, it has too many ships and must undergo further consolidation, Shippingwatch reports.
Overall the market is fragile and a correction will occur in the fall, he says, although "maybe not as far or deep as the previous one."
Ullman also expressed concern that the tanker market has "too many ships and too many ship owners, but especially in the past five years we have experienced an increasing competition from new money, the kind of money that we have not seen before.
"Now we're in a situation where it cannot continue any longer, and so we hope that the consolidation, which there are signs of in the industry, will continue."
Nevertheless Ullman says that tanker carriers Concordia and Stena Bulk – both of the Stena Group – are experiencing a marked improvement in business compared to the second quarter of 2014, and that the market is "continuing at a good pace."
His company is also benefitting from the decline in oil prices, which is "encouraging the general demand for oil."
Although Concordia is seeking new customers in Australia, New Zealand, and Africa, Ullman said it is "really trying to hold back" from allowing potential growth to cause internal strife, and he hopes that "our colleagues do not rush off to the shipyards."
Last month, Stena Bulk announced that it is "waiting to see how the market develops" before increasing the size of its Stena Sonangol Suezmax pool from 25 to 30 ships.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 2.50 | 611.00 | 4.00 |
| Rotterdam | 477.00 | 1.00 | 618.50 | 4.00 |
| Houston | 469.50 | 0.50 | 610.00 | 2.00 |
| Fujairah | 501.50 | 1.50 | 708.50 | 3.50 |
| Global 20 Ports Average | 532.00 | 2.00 | 711.50 | 0.00 |
| Global 4 Ports Average | 489.50 | 0.50 | 637.00 | 0.50 |
| Global Average Bunker Price | 571.00 | 1.00 | 759.00 | 0.50 |
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