Tankers enter the death zone

Like climbers entering the death zone above 8,000 metres en route to the summit of Everest, VLCCs have entered their own peak: the moment where prices for secondhand tonnage surpass newbuild prices, and sell signs flash hard. These moments tend to be fleeting and have historically been associated with the hottest stages of shipping cycles. The question is how often the market has reached this altitude before, and how long it can survive there.

Data from Maritime Strategies International (MSI) makes the VLCC phenomenon look rarer still. Its monthly matrix records just one previous VLCC inversion since 2000, lasting three months.

“This is very uncommon in VLCCs compared to other asset classes,” said Adam Kent, managing director of MSI. Read more at Splash247.com