Continued ordering for newbuilding crude tankers threatens recovery in the shipping sector.
According to Clarksons' data, 13 very large crude carriers have been ordered in the last six months, up from seven over the same period a year ago.
Owners are driven by low newbuilding prices, said Banchero Costa, saying newbuilding VLCC costs as low as $89.5m, at levels last seen nine years ago.
Samco Shipholding said yards' speculative building, as seen in some shipbuilding nations in order to create jobs and preserve shipbuilding industries, also is a threat to crude tanker's market recovery.
Industry players say prospected timeline of crude tanker market recovery is keep being delayed. Experts previously expected the market will start recovery in 2014-2015, however, recently many believe that recovery would not occur before 2016.
Meanwhile, newbuilding delivery for crude tanker is slowing down. Banchero Costa's report said this year would see the lowest delivery since 2008. Crude tanker fleet growth in 2013 and 2014 would stand at 4% and 2% each, comparing with 5% in 2012.
However, tanker demolition is suggested to become more active. 67 tankers over 78,000 dwt went to scrapping facilities last year, more than 2011's 41 vessels. However, in the first four months of this year, only 12 tankers were sold for scrap.
Still there is a good news for the market recovery, which is recovery in ton-mile demand.