Tanker Sector: A Liquid Sales Environment

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  • Tankers are considered to be the most liquid of all the shipping sectors in giving investors flexible market opportunities.
  • Dry bulk sectors had a higher level of liquidity between 2009 and 2018 and only under five tankers were sold per annum per 100 vessels.
  • Key factors driving the high turnover in the wet and dry bulk sales and purchase markets are the availability of tonnage and standardization of vessel type.

According to an article published by Tanker Shipping, tankers have proven to be one of the most liquid of all the shipping sectors in giving investors the opportunities to quickly enter and leave the market.

High level of liquidity

According to Clarkson Research Services, the research showed only the dry bulk sectors had a higher level of liquidity between 2009 and 2018. Over that 10-year period, just under five tankers were sold per annum per 100 vessels.

Dry bulk carriers performed marginally better at an average of just over five vessels per annum per 100 vessels but the less commoditized and standardized sectors like LNG carriers have just two sales per 100 vessels.

Key factors for high turnover

The main factors driving the high turnover in the wet and dry bulk sales and purchase markets are the availability of tonnage (the crude oil tanker fleet numbers over 2,000 units) and the standardization of vessel type – the design of a VLCC has not changed radically since the introduction of double hulls.

Another important factor is the presence of Greek asset players, who tend to favor the wet and dry bulk markets.

As noted last week, the tanker sales and purchase market are especially fungible when it comes to asset play opportunities for those with an appetite for risk and the knowledge of operating older units.

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Source: tankershipping

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