The tanker industry has a storied history of corporate showdowns. The latest, a three-way tussle involving Euronav, looks far from over.
The predicted boost to tanker rates from Russian crude disruptions has yet to materialize. Instead, rates have declined.
Even if no oil moves under price caps, Russian exports could face deep discounts and continue to flow via “shadow tankers.”
As container shipping stocks get battered by collapsing rates, tanker shares could be poised for a long bull run.
Container and dry bulk shares soared last year, leaving tanker stocks behind. This pattern has now reversed.
Just two supertankers have been ordered in the past 14 months, raising the risk of a future shortfall in oil transport capacity.
The latest shipping company poised to delist has a market cap of $3.5 billion. The latest new entrant’s market cap is under $20 million.
Without sanctions, tankers will keep loading Russian oil. ‘We’re not taking a moral high ground,’ says Frontline’s CEO.
The biggest deal in tanker shipping history would merge Euronav and Frontline, but consolidation is no panacea.
Some shipping shares are rising because of war tailwinds. Others are rising despite war headwinds.
