OPA Concerns Curb Sale and Purchase Activity in Tanker Market

The implications of OPA 90 and concern over vessel quality have curtailed sale and purchase activity in the tanker market. In the latest report published by PF Bassoe A/S, the Norwegian shipbrokers note that prices are some 20% lower than before the outbreak of the Gulf crisis, despite the high level of earnings during the past year and the generally positive outlook for the future. According to Bassoe, the main reason lies in the fear of pollution liability, represented by OPA, and the possibility of substantial expenditures required to bring ships up to an acceptable standard, has inhibited buyers.

A Bassoe spokesman told Marine Money, “The problem with older vessels is that, after one fault has been rectified, another tends to arise. This view was echoed by Eric Andersen, head of the RS Platou Economic Research Unit, who said that the older ships were taking longer to sell because of technical concerns in the light of OPA legislation. Moreover, he indicated it was unlikely that owners looking for tanker tonnage would switch their attentions to other ships, as has been suggested.

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