Tanker industry headed for recovery

22 July 1994

The oil tanker industry is headed for recovery after a lengthy slump, according to UK consultant Petroleum Economics. Charter rates for a modern 250,000-dwt supertanker should rise on the spot market to $21,000 a day in 1995 from $13,000 this year, and to $30,000 the following year, the company's latest review of the tanker market says.

Surplus tanker capacity looks like falling below 50 million dwt soon, the consultants say. This level serves as the psychological trigger for rates paid for charter tankers to increase sharply. Various factors, including a possible increase in OPEC shipments next winter, are likely to contribute to greater demand for tankers. There are few modern vessels under construction, say the consultants.

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