09 December 2008 20:17 [Source: ICIS news]
LISBON (ICIS news)--Chemical tanker freight rates could fall in 2009 and 2010 before re-establishing some balance in 2012, a broker said on Tuesday.
"The last four or five years have frankly speaking been good for ship owners," said Geir Olafsen of shipping broker Inge Steensland. He was talking to the 2008 CMAI World Methanol Conference.
Olafsen said that the industry had enjoyed a relatively long period of strong freight rates through this time, but the rates were now falling.
"There is not a severe correction so far, but it has started to correct downwards," he said.
The recent financial crisis was partly responsible for the drop, accelerating an already anticipated softening in the chemical tanker market, according to Olafsen.
The economic slowdown has hampered trade, while new export projects are now facing delays.
The impact of the slowdown will exacerbate the effects of an impending oversupply in the global chemical tanker fleet.To discuss issues facing the chemical industry go to ICIS connect
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