i read that the overpaid for last pair of aframax most likley to help out TOO. isnt the tanker management fees inside of TNK?
def spot rates see below. these ships are made to move. when they sit idle things rust and break. they would have spend money to go thru classification again to be able to transport cargo. not to mention find a new crew that they just spent to train. if they layup what could they get opex down 5k a day maybe? you still would have to have some crew at dock maintaining ship. these are complex systems cant just dock and turn off the ship.
Over the last few days we have seen a most welcome increase in chartering activity and an even more welcome boost of the spot rates. As of now it is hard to say whether this is the beginning of a sustainable improvement out of the rate misery or whether this hike was caused by quite a few deals in a fairly narrow window where number of vessels was limited for loading late June/early July in the MEG. Nonetheless, spot rates as well as the Baltic has come up some 10% and would be quickly on their way to the USD 30 mark (RT/Chiba) if recent activity level carries on. However, the recently (and frequently) published LPG spreads through 2016 do not allow for much improvement in the freight market at all. In fact it is very bleak reading material which everybody involved in freight hopes will be proven very wrong as we soon start with the 2nd half of the year. The fleet balance into July seems to be fairly normal in the East, but in the West it seems the owners have already taken their precautions for the 2 weeks' overhaul at Enterprise in the last week of June, first week of July and the shortage of 8-10 cargoes. Various rumours have circulated about cancellations of a pair of VLGCs (2018) at a Chinese yard and that there are still 2 unplaced orders at JMU for 2019.
the extreme drop in GBP is very disruptive NAO. 90% of revenues are paid in GBP. it makes expensives cheaper i believe but when converted back to USD less revenues for NAO to distribute. long term a weak GBP will help lower offshore costs in North sea. This may help with drilling wells that otherwise wouldnt. any thoughts?
all depends on supply and demand. vlgc needs the next batch of propane export/import projects to come online. i think you will also see delivers pushed back. shipbuilders are in trouble and will easily push them back, and may even be subject on cancellations. dorians ships imo will not be stacked. there breakeven is very low (22,000?). latest fearnleys report said rates were close to 30k. i would think it would cost more to restart the ship after a layup then running it at small loss. also competivley you want to force the smaller players out of business who were reckless with dividends and debt. i think more consolidation is in the cards.