Supply Chain Research

The tanker and bulk carrier sector had a challenging fourth quarter. Average tanker rates rose just 1% on a year earlier while fuel costs surged 27%. The difficult environment has been shown by Euronav’s 4Q results which included a 19% drop in revenues. At the sector level an improvement in bulk rates of 48% should mean total revenues should rise 3% vs. a year earlier. Profitability will likely decline. Euronav’s EBITDA margin dropped to 42% from 54% (adjusted for capital gains on vessel sales). Yet, that was markedly better than the 37% anticipated by analysts as well as the 39% reporte...