The subdued tanker market continues to hit earnings of shipping companies, even though on the dry bulk side, shipowners are managing to get relatively better rates in the last few weeks.

Shipping analysts do not anticipate any significant improvement in rates in the coming months. An industry official said that "Freight rates are also expected to be muted in September on account of the weak demand scenario in the US and Europe.”

For instance, on September 14, the daily earning of a very large crude carrier plummeted to a level of just USD 1,755, against an average of USD 37,368 per day in April this year at this level, the vessel owner would not have recovered even the operating costs.

(Sourced from Business Line)