The Increasing Importance of Spot Markets

by G.E. Kurz, President, Mobil Shipping

This is not the most propitious time to talk about the charter market for product tankers, or any other tankers for that matter. We certainly have seen better times than what we are confronted with right now. It’s not a rising Dow Jones by any measure, but then who knows how long that is going to last.

Frankly, I am not happy when the news is not good, and it is hard to find good news in today’s market environment. We have low spot rates, a languishing, practically non-existent time charter market, and an overhang of newbuildings for delivery or on order. Add to this a less-than-rosy near-term demand outlook and you have all the essential ingredients for a pretty unattractive market scenario as we enter the new millennium.

Rather than speculate any further about market trends, I would like to explore how the product tanker market has evolved to provide some insight of the underlying market forces.

This is only an excerpt of The Increasing Importance of Spot Markets

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