View from City Road: Tanker boom on the horizon
Wednesday 10 November 1993
The money will be used by Bona to pick up good-quality second- hand vessels in the medium size tanker market whose values have been hammered by the slump in profitability in recent years. Bona's own vessels have typically more than halved in value since 1989.
But the sky could be brightening. Scrapping of the surplus and ageing tonnage built in the mid- Seventies boom could remove more than a fifth of the world fleet by 1996, while the depressed level of new orders may expand it by only 12 per cent, Warburg says.
Freight rates, currently at a six- year low, could be back to peak 1991 levels by the mid-Nineties, giving a boost to second-hand values and narrowing the discount of shipping shares to their net asset values. Such hopes have driven some Nordic shares 75 per cent higher this year.
Scrapping of old capacity may not run as high as expected, but Nortankers, a fund set up in 1989 to invest in tankers, foundered last year because its over-large vessels were not considered to be up to scratch.
- 1 Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
- 2 Number of young homeless people in Britain is 'more than three times the official figures'
- 3 The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
- 4 Right to die: Belgian doctors rule depressed 24-year-old woman has right to end her life
- 5 The biggest first date turnoff has been revealed
Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
Number of young homeless people in Britain is 'more than three times the official figures'
Van driver who comforted Clark Carlisle and called 999 after suicide attempt dies age 24
Greece debt crisis explainer: A history of just how the country landed itself in such a mess
Greece debt crisis referendum: Greeks want to vote No to austerity – but Yes to Europe
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
More Britons believe that multiculturalism makes the country worse - not better, says poll
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...