The coronavirus has both helped and hurt tanker rates and shipping names in 2020. Initially, its adverse impact on oil demand disrupted tanker traffic. But the collapse in world demand led to a surge in floating storage, which supported tanker rates.
Now, floating storage is peaking and the demand to use tankers for floating storage is hurting tanker fixtures, and in turn, shipping names. Looking into the future, lagging demand for oil through 2021 implies a lower demand for tanker transportation, and tanker equities have been crushed.
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