Welcome to INTERTANKO Tanker Seminar Athens 24 October 2001 International Association of Independent Tanker Owners Safe Transport, Clean Seas, Free Competition Welcome to INTERTANKO Tanker Seminar Athens 24 October 2001 Colin Cridland…Finn Englesen Jr…Jarle Hammer… Odd Hassel…Marin Stopford…Erik Ranheim
..safe transport.. .. clean seas.. ..free competition
Competitive Free market? Not the law of the jungle Common rules, standards Competitive
Competitive Focus on Price, commodity Sanctions, but No premium for excellence
Preconditions for free Competition & Safeer Transport, Cleaner Seas, Transparency High min standards Premium for quality
Transparency “ asymmetric information ” …….bad quality pushes good quality from the market because of an information gap…….. George Akerlof Michael Spence Joseph Stiglitz ………whoever has the least information can never be confident about what is being traded…………..
The sky was the limit Allan Greenspan, 96, ”irrational exuberance”
Tanker deletions and deliveries
VLCC movements 1974-1999
..outstanding questions..
How far can newbuilding prices fall?
What is the pulling power of Asian countries
How will the US Energy Plan affect tankers?
..added uncertainty.. ..Cheney Report…US National Energy Policy..
Average monthly VLCC rates and Middle East crude oil production
Tanker market conditions change fast Possible Jokers, scenarios; Looking ahead Bleak outlook, but Tanker market conditions change fast Possible Jokers, scenarios; Iraq, OPEC collapse, Choke point disruption Erika Extra cold winter