Concordia Maritime Readies for Tanker Market Rebound with New Charters
- Business & Finance
Amid anticipated market recovery after the New Year, Swedish shipping firm Concordia Maritime chartered in an IMO2/3 class MR tanker and extended charter for another MR whose charter expired in November.
The newly chartered tanker will be employed with Concordia on a two-year contract, which includes several extension options.
The vessel is under construction and will be delivered from the shipyard in January 2018, when the charter is slated to start.
Separately, the company said that the contract hire for the other ship will be extended for another year.
Both deals are a joint charter with Stena Bulk, and Concordia Maritime’s share amounts to 50 percent. Both vessels will be operated by the MR pool within Stena Bulk Product & Chemicals (formerly Stena Weco).
“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 orderbook is relatively low and net growth in new MR vessels is only expected to be about 2 percent in 2018,” Kim Ullman, CEO of Concordia Maritime, said.