Shipping markets hit YTD lows, led by tankers and gas carriers – Clarksons

Combined shipping earnings are worse than at any time so far this year, with energy shipping hit especially hard, according to Clarksons, which said an oversupply of tonnage led to a 3% decline in the shipping broker’s ClarkSea Index last week to ~$22.5K/day.

Clarksons noted softer rates in tanker markets, with average crude vessel earnings down 12% over the week, although still at a healthy $33,713/day, and product tanker earnings 16% lower to $13,594/day, as reported by TradeWinds.com.

In the LNG carrier spot market, average rates for a two-stroke 174K cbm unit down 2% on the week to ~$30K/day, which Clarksons said was a new record low.

“Though there were signs of an uptick of activity, there remains potential for further softening in the East,” Clarksons said.

Bulkers reportedly turned in a mixed week, led by capesize earnings rebounding by 26% to $22,239/day.

Among several potentially relevant stocks are Frontline (NYSE:FRO), International Seaways (INSW), DHT Holdings (DHT), Nordic American Tankers (NAT), Scorpio Tankers (STNG), Teekay Corp. (TK), Teekay Tankers (TNK), Danaos (DAC), Tsakos Energy Navigation (TEN), Ardmore Shipping (ASC), Torm (TRMD), Hafnia (HAFN).