The below is an excerpt of an article in ShippingWatch, published September 24, 2019.
Written by Søren Pico.
While competitor Stolt-Nielsen says that it will be sometime in 2020 before a meaningful recovery emerges in chemical tanker, CEO Kristian Mørch and Odfjell feel that things are already looking better now.
"I already think we're seeing the recovery. The rates we're booking are increasing, and because we have a slightly lower contract coverage, we've been better able to pack the ships together"
Kristian Mørch, CEO
The supply of ships, as well as the demand to transport chemical cargoes, paint "the strongest picture we've seen in many years," says Mørch. This is the case when removing factors such as the upcoming sulfur regulations and a possible recession that could lower private consumption and thus the need to ship chemicals.
"I don't think we'll see a boom, and trade war and a possible recession could of course change this. But beyond that, I think we're seeing all the right things"
At Odfjell, Mørch says that the company has seen the market improve since the fourth quarter last year. And even though seasonal fluctuations will weigh down in the third quarter, the shipping company estimates that the market will continue to move in the right direction.