Wrecking Tanker Markets Force Fall in VLCC Rates

Wrecking Tanker Markets Force Fall in VLCC Rates

Rates for Very Large Crude Carriers on the Baltic Exchange’s benchmark TD3 time charter equivalent route have plunged to record lows this week, in a market portrayed as a “ruins”.
According to Evercore analysts, the continuous postponements in a sustainable uplift keeps most investors uninterested in the area.

VLCC dejection can be credited to a blend of proprietors without the battle, as feeling stays as low as it can get, combined with the overflow of relets, as indicated by Norwegian broker Fearnleys.
As suggested by shipping analyst J Mintzmyer – the colossal measure of VLCCs hitting the water this year should see tear-downs of somewhere around 50 VLCC counterparts to bring about anything looking like a market balance.
Euronav cautioned a potential re-visitation of COVID-19 limitations and high oil costs influencing utilization recuperation as potential obstacles that make it intense for big tanker proprietors to design forward.

Possibly important tickers incorporate EURN, FRO, TNP, DHT, INSW, TOPS.
Euronav announced a GAAP loss of $72.5M for Q4 versus a $58.2M misfortune in the year-prior quarter, and a $339M misfortune for FY 2021 contrasted and a $473M profit for 2020.

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