Let’s go to the Video Tape… Market Highlights from 1999

Provided by Marsoft, Inc.

1999 Tanker Highlights
The final year of the decade (and century, and millennium) was a bad one for tanker owners. In particular, the middle six months were miserable, with freight rates plummeting in response to severe cutbacks in OPEC crude production. For most ship types, earnings fell back to levels not seen since 1992. Period charter rates declined by about 20% over the course of the year.

Interestingly, though, secondhand values did not follow suit – at least, not entirely. While some prices, mainly for product tankers and Aframaxes, did move slightly lower, some of the larger ship types registered small price increases by the end of 1999. Part of the explanation for this phenomenon may have to do with expectations of an impending recovery in freight rates. But it is also worth noting that prices fell far more than rates during 1998, so it was reasonable to see some adjustments take place during 1999.

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