Industry Note No. 19 - The 10% Solution

Large tanker owners have been troubled for some time by a lingering black cloud hanging over the spot market. It’s no surprise how we got here; however, as oversupplied position lists tell the tale quite well and matters are only getting worse. Newbuilding tonnage continues to hit the water at a rapid pace, while the demolition profile has vastly underperformed expectations. While current market conditions make it hard to see the light at the end of the tunnel, taking a deeper look at possible solutions may uncover a silver lining.