Equities

Capital Link Indices(basis COB Thurs 2 July)
Maritime Index 1531-43 -2.72%
Tanker Index 1916-71 -3.57%
Dry Bulk Index 865 -28 -3.10%

The Jefferies Shipping Quarterly is out. Some brief tanker commentary from Doug Mavrinac: “Crude tanker rates softened materially in the second quarter as the full impact of OPEC supply cuts took effect, additional tanker supply entered the fleet, and the use of additional vessels for floating storage subsided as the contango in the oilmarket shrank dramatically. While tanker rates have rebounded in the last couple of weeks with higher oil prices, we believe the increase in tanker rates will prove temporary as global tanker supply is still well in excess of demand on an aggregate basis. Land-based crude inventories remain at multiyear highs. As a result of this, we believe there is likely more pressure to come on crude tanker spot rates in the months ahead. This would likely pressure asset prices and could cause the violation of debt covenants as it did on the dry bulk side which would likely reduce the companies’ abilities to pay dividends.”