Tank rates are down so far in 2011
Tank rates were extremely weak during the first half of 2011, averaging a 4% year-over-year drop during that time. After peaking at a 5% y/y gain in the middle of last year tank rates turned negative by the start of the year. Year-over-year comparisons will remain tough until the start of 2012, and we don’t anticipate seeing much in the way of positive growth until then. Once we start overlapping the weak start to 2011 we should see year-over-year gains jump into the mid-single digits.
Bulk goods, like those tankers would carry, are the only segment seeing significant weakness in rates right now.
After dropping 11.2% in 2009 tank rates rebounded 2.7% in 2010. We anticipate seeing Tank rates dropping once again in 2011, falling 2.6% for the year, before growing robustly in 2012 and 2013, rising 6.3% and 7.7%, respectively.