Concordia Eyes Growing Product Tanker Market
Swedish tanker shipping company Concordia Maritime said it has signed a contract to charter in another IMO2/3 class MR tanker while also extending an expiring charter of another MR tanker.
The new charter contract will run for two years from the time the newbuild is delivered in January 2018, with multiple options to extend.
The other MR tanker charter contract, which expired in November, will be extended for a minimum of one year.
Both are 50/50 joint charters with Stena Bulk to be operated by the MR pool within Stena Bulk Product & Chemicals.
Concordia Maritime said it intends to continue investing in the product tanker segment as it expects the market to grow stronger.
According to Kim Ullman, CEO of Concordia Maritime, “Together with the vessels we chartered in this summer, these contracts should be seen as a clear sign of our view of the market in the period ahead. After a period of weak markets, we expect a gradually stronger and more balanced market from mid-2018. The main drivers include reduced inventory levels, which will result in increased demand for oil transportation. The situation on the supply side is also beginning to look better. The order book is relatively low and net growth in new MR vessels is only expected to be about 2 percent in 2018.”
