Sales and purchase of very large crude oil carrier (VLCC) is sharply increasing in a recent days. But tonnage overcapacity problem is too serious to hope for improvement of shipping market.
During September, a total of eight VLCCs have been traded in S&P market.
Park Mu-Hyun, an analyst from E*Trade Securities in Korea pointed out that expanded S&Ps can be affected by several reasons. For instance, two recently traded VLCCs are to be converted into FPSO or used as storage tank for increasing heating during the winter.
He explained that VLCC-converted FPSO accounts for around 70% of overall tonnages.
Meanwhile, Clarksons prospected total amount of VLCC S&P deals in 2012 would exceed 19 vessels traded during the whole 2011.