ABN AMRO sees a recovery in the product tanker market from 2018
In a recently published analysis of Scorpio Tankers, the Dutch bank ABN AMRO sees a recovery in the product tanker market from 2018. The analysis is in line with Concordia Maritime’s assessment of the market’s future development.
On the supply side, ABN AMRO sees that fleet growth is now declining, while the steadily increasing demand for transport is expected to continue. All this will create the conditions for a recovery both in terms of revenue and asset values. According to ABN AMRO, external factors such as new legislation on ballast water and sulphur emissions, inventory levels and development of trade routes may also help to further strengthen the market’s recovery while contributing to rising spot rates.
“We share this more nuanced picture of the market’s future development. 2017 is likely to be a relatively weak year, but we believe that the market will gradually strengthen from 2018 onwards. It is on this scenario that we base our strategy and our activities,” comments Kim Ullman, CEO of Concordia Maritime.