Amalia Tankers sees poor outlook for product, chemical segment

The recurring boom and bust problem of over-ordering and over-leveraged shipping companies will continue to plague the market and the product and chemical tanker markets will be in a worse position because recovery there is very dependent on consumer demand, which will take a long time to return in Europe, Amalia Tankers managing director Diran Majarian told Seatrade Global.

He believes that the perceived recovery in the tanker market in the first half of last year was an aberration because the increase in crude liftings that filtered into increased cargoes in the product and to some extent chemical sectors was not based on fundamentals.  

"The big question is once they finish their production runs what will they do with the products," he asked. Marjarian pointed out that until the Western economies recover there will be little real demand and production runs will drop off again and lead to poor rates as cargoes disappear.

Posted 23 May 2013

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Vincent Wee

Asia Editor, Seatrade Maritime News

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