Shipping companies are finding it hard to come to terms with large price hikes for new crude tankers, according to Braemar chief executive James Gundy.

Newbuilding contracting has been picking up this year, particularly in the product carrier space, but the cost of bigger vessels is proving a considerable barrier, the shipbroker told TradeWinds.

“We have seen a bit of a rally in the products/LR2 market,” Gundy said.