23SEP2019 - NEWS - Clarksons Shipping Market Outlook: Tanker Rates Could Be Heading Higher In Next 12 Months

Introducing the summary, Steve Gordon, Managing Director of Clarksons Research commented, “Despite a range of economic “headwinds”, our overall earnings indicator, the ClarkSea, has continued to trend upwards this year, increasing 12% y-o-y (2018: up 13% y-o-y). In the tanker sector (up 75% ytd, albeit from a low base), our projections, recent Middle East disruption aside, suggest underlying improvements over the next twelve months, with IMO 2020 and long haul trades providing a “boost” to demand. The LPG sector is also improving (up 60% ytd) while LNG continues its expansion phase. The struggles of the first half have been replaced by a much stronger Q3 for bulkers, although some shorter term factors, including iron ore supply reactivation and scrubber retrofit, may be at play. Containership charter rates have increased since start year (up 13%), led by the larger sizes – it seems support from “non-headline” fundamentals will be needed for these trends to continue. The Ro-Ro market has eased back but cruise investment continues. Offshore has seen activity, utilisation and rates edge upwards but progress has varied and challenges remain.”