The Tanker Market’s Balance Sheet Paradox
By Aran Williams
Managing Director, B. Dyson Maritime
Public tanker companies today are carrying some of the strongest balance sheets the shipping sector has ever seen.
That sounds prudent. Individually, it is.
But collectively it may be contributing to even higher tanker prices, inhibiting efficient recycling of capital.
Private shipowners have an advantage here. They can distribute capital aggressively to themselves during strong markets, then draw capital back when opportunities emerge.
This smooth flow of capital is far harder for public companies.
So capital accumulates.
And public tanker companies can end up waiting for a softer asset market that their financial strength may be helping prevent.