A Crude Reality: Oil Tankers Drowning in Debt
In the debt-heavy oil transportation industry, lower transportation rates can seriously jeopardize a company's solvency. We're now seeing rates at $21,000 per day for the average very large crude carrier (VLCC), compared to Suezmax shipping rates of more than $70,000 per day in 2010. The rates are down 5.5% so far this year compared to previous estimates and they look to still be turning lower in the near future. The firms in this industry will have to become a bit more creative with financing to remain going concerns.
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The article A Crude Reality: Oil Tankers Drowning in Debt originally appeared on Fool.com.Austin Smith has no positions in the stocks mentioned above. Joel South has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.