The substantial delivery of tanker newbuildings, especially VLCCs and suezmaxes in 2017 is a "big challenge" and the market "will not stay as strong as it is today" according to Stena Bulk president and ceo Erik Hanell.

Hanell told Seatrade Maritime News that the overcapacity situation puts pressure on the bigger segments the MR and other product tanker segments down the line will also be impacted although with some lag. Hanell qualified however that there would be some parameters that will remain unknowns such as whether oil production will remain unabated and lead to onboard storage which could lead to a lag in the expected downturn cycle in 2017.

Meanwhile in the LNG segment, with two of its three vessels on spot and the remaining one on a shorter-term charter, Hanell acknowledges that there have been "tough times for LNG ships".

"The oil price does affect this of course as well, but in general we have a positive view of LNG going forward," said Hanell. He noted that if the oil market was in a better state, the good market would have come already.

"We can feel some tendencies it's going to go up (and) seen a little bit more activity but I think we have to wait for at least another six months before we see any real major change and maybe even up to a year," Hanell concluded.