Key facts
- Shipowners invested profits from record high rates into new vessels.
- Owners are preparing for a steep drop in rates if the Strait of Hormuz reopens.
- The conflict in the Strait of Hormuz previously drove record profits for tanker owners.
Following a period of record profits driven by the conflict and subsequent closure of the Strait of Hormuz, shipowners have invested their earnings into acquiring new vessels. They are now bracing for a significant decrease in shipping rates should the Strait of Hormuz reopen. This strategic investment in new capacity, fueled by the exceptional market conditions, positions them for a potential downturn in the sector.