Confidence in the tanker market is high, according to a recent survey by Moore Stephens
Moore Stephens has issued the results of its Shipping Confidence Survey for the three months to the end of November, revealing confidence in the tanker market is high.
Net sentiment in the tanker sector was 48 points higher than in the previous period.
The number of respondents expecting higher freight rates over the next 12 months in the tanker market was up by seven percentage points on the previous survey to 60%, while those expecting lower rates was up from 9% to 12%.
In a stand-alone question, 24% of respondents said they expected the price differential between high-sulphur fuel oil and IMO-compliant low-sulphur fuel oil at 1 January 2020 to be between US$250 and US$324 per tonne; 23% put the figure at between US$175 and US$249, while 18% estimated it at between US$325 and US$399; 12% thought the cost differential would be between US$100 and US$174.
Moore Stephens partner shipping & transport Richard Greiner said: “It is noteworthy that almost a quarter of our survey respondents thought the price differential between high-sulphur fuel and IMO-compliant low-sulphur fuel come 1 January 2020 would be between $30 and $100 per metric tonne more than it is at present.
“Increased costs are inevitable. Increased earnings are essential.”
The expectations of a price differential between high-sulphur fuel and IMO 2020 global sulphur cap-compliant fuel is a topic for debate at the Asian Tanker Conference in Singapore in February.