BUOYANT NEWBUILDING MAY DELAY RECOVERY

摘要

The newbuilding market remains buoyant this year after a subdued 2016 that does not bode well for the market, struggling with overcapacity. Fifty-five tankers, including 27 VLCCs were ordered in the first five months, compared with 12 in the same period last year. Attractive prices are luring shipowners looking for fleet renewal, but their enthusiasm may delay the recovery. The S&P market strengthened in May as strong activity pushed prices higher. However, as the freight rate outlook remains pessimistic, we do not expect any strong recovery in asset prices in the coming months.