PRODUCT CARRIER ORDERBOOK RAISES OVERCAPACITY CONCERN.
Concern is growing about the swelling MR orderbook. Recent large orders have included 16 MRs for Middle Eastern interests for long term charter to Shell taking MR orders this year to 180 compared to 115 last year and only 50 in 2011, London broker EA Gibson quoted as saying.
Other orders are still under negotiation as well as options under existing contracts. These take the current orderbook to over 300 MR vessels.
It is a similar story in the LR2 sector where this year's 60 orders represent 74% of the current LR2 orderbook.
The fear is that over-ordering could once again kill, if not exactly the golden goose, one of the more promising sectors of the tanker market.
However, there is a timing issue. Almost all these new MRs will deliver by 2016. The ships will be in the market before all the new refinery capacity is on stream and that is not accounting for any delays in refinery projects.