US shipping research group McQuilling Services has released its 2019-2023 Tanker Market Outlook, reports Tanker Shipping & Trade.
Here’s an excerpt from it.
Basis of forecast
The outlook consists:
- a five-year spot and time charter equivalent (TCE) outlook for eight vessel classes
- a five-year asset price outlook and
- one and three-year time charter rate forecast through 2023
The forecast is based on evaluating historical and projected tonnage supply and demand fundamentals in the tanker market.
At launch report, Conor Stone said he expects that due to supply side pressure and demand indicators pointing to decelerating growth, freight rates in 2019 are likely to appreciate marginally.
The broker foresees a much tighter balance for VLCCs in 2022 with earnings climbing to US$33,700/day.
Scrubber Economics Model
The model shows that over the 2020-2025 period, VLCC (ECO) tankers with a scrubber will yield US$6,100/day more than a VLCC ECO ship without a scrubber.
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