Amidst fears of a tanker glut, MISC Bhd sees growth opportunities in the tanker business.
President and chief executive officer Datuk Shamsul Azhar Abbas said shipping was a cyclical business and industry players recognized that there would be opportunities to expand during a downturn.
An increase in oil prices, a number of new tankers transporting crude oil and increasing size of oil tankers fleet worldwide had raised concerns among the shipping fraternity of a potential tanker glut.
It was reported that the size of the oil tanker fleet expanded 3.8% this year, overwhelming the 1.7% growth in in crude oil demand estimated by the International Energy Agency.
MISC, through its Britain-based subsidiary AET Ltd, manages the global petroleum tanker business, controlling a fleet of 70 vessels of mainly Aframax vessels and very large crude carriers
The group is also waiting for another 19 vessels to be delivered over the next four years.
Shamsul told StarBiz that the trend in tanker rates over the past five years was great, with owners enjoying good returns, which in turn was one of the reasons for the oversupply.
Source: The Star