The warning follows forecasts that the product tanker segment will recover faster than other segments of the tanker market as fewer orders had been placed over the last few years.
With owners' rising enthusiasm for ordering new product tankers, 35 contracts for new MR tankers in the size range of 30,000-59,999 dwt were signed by the end of April, up from five new contracts inked in the same period of last year, according to data from Clarksons.
“Based on the current delivery profile and looming surplus, we believe these orders may be premature and earnings could suffer,” McQuilling said.
McQuilling does not believe there has been a robust enough change in the market to justify the ordering spree. “Lacking any significant improvement in demand fundamentals in the clean product trades, we were surprised by the surge in MR2 newbuilding contracts,” it said.
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