Large tanker owners still with abysmal profit

By Finance

The owners of large tankers are still at loss with most routes bringing miserable earnings. Last week, the Gulf VLCC earnings were 6,000 US dollar per day or worse West and East.

Surprisingly, the trend was bucked only by US Gulf/West Africa with about 20,000 US dollar per day. The Med/Med voyages of suezmaxes were hardly affected with top of 10,000 US dollar per day. A little weight was put on by aframaxes with Caribs/US Gulf and Gulf/East earnings of around 20,000 US dollar per day. 

Earnings of product carries have started recovering a bit. Still, they are not at 2013's levels when a burst of new orders was boosted. The daily AG/Japan earnings of LR1s and LR2s rated almost 16,000 and 18,000 US dollar. The average year-to-date is around 10-11,000 US dollar per day. Last year's top destination, the Atlantic, had average earnings in the range 15-20 thousand US dollar, now the numbers are showing under 10,000 US dollar per day. 

Big part in the abysmal profit are playing the sheer tonnage excess and the falling of the US gasoline imports. 

The MR marker is expected to improve in short term because a lot of older tanker vessels should be retired, some single hull vessels must be phased out, whilst new buildings are on their way. 

According to Clarkson Research dirty products earnings have doubled their 2013's averages with Caribs/US 20,000 US dollar per day.