Until May 2016, ton mile demand was rising and rates were structurally higher (in the green shaded area). Since then, ton mile demand has been choppy, but almost flat when shown as a trend line (in the red shaded region). Rates have been much softer during this period of stagnant demand.
The number of available ships in this size range has increased during the same time period, structurally depressing rates. Supply growth appears to be slowing, but recycling has not been as high in this market as in the large crude markets.
The regions which have decreased their contribution to ton mile demand the most year to date when compared with the same date range in 2015 are shown to the left.
Source: Court Smith / Vessel Value
